NATIONAL CENTER FOR EDUCATION STATISTICS

Statistical Analysis Report March 2000

Postsecondary Education Descriptive Analysis Reports

Trends in Undergraduate Borrowing:

Federal Student Loans in 1989–90,

1992–93, and 1995–96

Lutz Berkner

MPR Associates, Inc.

Larry Bobbitt

Project Officer

National Center for Education Statistics

U.S. Department of Education

Office of Educational Research and Improvement NCES 2000–151
U.S. Department of Education

Richard W. Riley

Secretary

Office of Educational Research and Improvement

C. Kent McGuire

Assistant Secretary

National Center for Education Statistics

Gary Phillips

Acting Commissioner

Division of Postsecondary Studies

C. Dennis Carroll

Associate Commissioner

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Suggested Citation

U.S. Department of Education. National Center for Education Statistics. Trends in Undergraduate

Borrowing: Federal Student Loans in 1989–90, 1992–93, and 1995–96, NCES 2000–151, by Lutz

Berkner. Project Officer: Larry Bobbitt. Washington, D.C.: 2000.

Contact:

Aurora D’Amico

(202) 219–1365
iii

Executive Summary

Between the academic years 1989–90 and

1995–96, the total dollar volume in federal student

loans doubled, increasing from about $13 billion

to about $28 billion.1 Nearly 90 percent of these

funds were received by students as federal Stafford loans or Supplemental Loans to Students

(SLS).2 SLS loans were replaced by unsubsidized

Stafford loans in 1993–94. Stafford and SLS were

closely related programs and are treated together

in this report.

The total amount borrowed by undergraduates

through the Stafford/SLS programs increased by

about $2 billion between 1989–90 and 1992–93,

from approximately $8 billion to $10 billion.

Three years later, in 1995–96, the total undergraduate Stafford loan volume had increased by

$7 billion, to approximately $17 billion.3 The

larger increases in loan volume during the second

period came after the 1992 Reauthorization of the

Higher Education Act, in which Congress made

substantial changes in the federal financial aid

need analysis and the structure of the federal student loan programs.

There are two broad categories of federal student loans, subsidized and unsubsidized. For sub-

 

1The College Board, Trends in Student Aid 1998 (Washington, D.C.: 1998). These totals include all federal loan programs and both graduate and undergraduate borrowers.

2Calculated from data in Trends in Student Aid. The other

smaller federal student loan programs are PLUS loans for

parents, Perkins loans, and loans to students in the health

professions.

3These estimates for undergraduates are based on unpublished data from the National Student Loan Data System.

Approximately one-fourth of the Stafford/SLS loan amounts

were received by graduate and first-professional students.

sidized loans students are not charged interest

while they are enrolled. In order to qualify for an

interest-free subsidized loan, students must demonstrate financial need. For unsubsidized loans

the federal government does not pay any of the

interest for the students, who may obtain them to

pay for educational expenses without demonstrating need. Depending on the circumstances,

students may obtain either subsidized or unsubsidized loans, or a combination of both. In determining the need for financial aid, students are

considered either dependent on their parents for

support, or independent and self-supporting. The

federal student loans have limits on the maximum

amounts that students may borrow. These limits

vary by dependency, class level, and the type of

loan. In general, independent students may borrow

larger amounts than dependent students by combining subsidized and unsubsidized loans.

Some of the major changes in the

Reauthorization of 1992 that affected the eligibility of undergraduates for federal loans, and the

amounts that they could borrow, were the following:

• The loan limits on subsidized Stafford

loans were increased (except for first-year

students).

• Changes were made in federal need analysis (such as eliminating the consideration

of home equity) that generally made it

easier for dependent students to qualify

for subsidized Stafford loans.

• For some independent students, changes

in need analysis reduced eligibility for
Executive Summary

iv

federal Pell grants,4 but increased their

eligibility for subsidized loans.

• Unsubsidized loans were made generally

available to dependent students for the

first time.

• The separate SLS program of unsubsidized loans for independent students was

phased out and replaced by unsubsidized

loans for all students through the Stafford

program.

• Dependent and independent students

could borrow either subsidized, unsubsidized, or a combination of both types of

Stafford loans. The maximum amounts of

the combined loans for independent students were about double the amounts

available to dependent students, however.

Most of these changes, directly or indirectly,

allowed more undergraduates to borrow, and to

borrow larger amounts, beginning in 1993–94. In

economic terms, there was a substantial increase

in the supply of federal loan funds. This report

analyzes the effect of the 1992 Reauthorization by

comparing undergraduate borrowing patterns in

two three-year periods: from 1989–90 to 1992–93,

before the changes; and between 1992–93 and

1995–96, when the changes to the programs were

implemented.

Changes in Borrowing: Key Findings

In 1989–90, about one-fifth (19 percent) of all

undergraduates received Stafford/SLS loans and

this percentage had not changed in 1992–93 (figure A). However, during the same time period,

students borrowed more, and the average loan

amount increased (in current dollars) by $500

from $2,600 to $3,100 (figure B). Three years

later, when the new loan program rules were

 

4The Pell grant program provides grant aid to undergraduates

attending postsecondary institutions.

Figure A—Percentage of all undergraduates reFigure A—ceiving subsidized, unsubsidized, and

Figure A—any Stafford Loans or Supplemental

Figure A—Loans to Students (SLS) in 1989–90, 

Figure A—1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center

for Education Statistics, National Postsecondary Student

Aid Study, 1989–90 (NPSAS:90), 1992–93 (NPSAS:93),

1995–96 (NPSAS:96), Undergraduate Data Analysis

Systems.

All undergraduates

19 18

3

19 18

3

25 22

10

0

10

20

30

40

50

Total

Stafford/SLS

loans

Subsidized

loans

Unsubsidized

loans

Type of loan

Percent

 1989–90 1992–93 1995–96

Figure B—Average subsidized, unsubsidized, and

Figure B—total Stafford Loans or Supplemental

Figure B—Loans to Students (SLS) received by

Figure B—undergraduates in 1989–90, 1992–93,

Figure B—and 1995–96

SOURCE: U.S. Department of Education, National Center

for Education Statistics, National Postsecondary Student

Aid Study, 1989–90 (NPSAS:90), 1992–93 (NPSAS:93),

1995–96 (NPSAS:96), Undergraduate Data Analysis

Systems.

2,600

2,200

2,900

3,100

2,700

3,500

3,900

3,400

4,600

0

1,000

2,000

3,000

4,000

5,000

Total

Stafford/SLS

loans

Dependent Independent

Amount

 1989–90 1992–93 1995–96
Executive Summary

v

in effect, both the percentage of students borrowing (25 percent) and the average loan amounts had

increased.

Dependent Borrowers

Between 1992–93 and 1995–96, borrowing

rates increased substantially among dependent

students, rising from 20 to 29 percent. When unsubsidized loans were generally available to dependent students in 1995–96, 9 percent of all

dependent students obtained them. In 1995–96,

about one-third of the dependent borrowers had

unsubsidized loans, either alone (16 percent) or

combined with a subsidized loan (15 percent)

(figure C). The proportion of dependent student

borrowers with unsubsidized loans increased at

higher family income levels. Among the borrowers in the highest income quartile (over $70,000),

two-thirds received unsubsidized loans, compared

with just 13 percent of the borrowers in the lowest

income quartile (under $25,000). One-half of the

borrowers in the highest income quartile received

only unsubsidized loans, which means that they

did not qualify for the need-based loans.

The changes in the loan programs and federal

need analysis allowed for increased participation

in the Stafford loan program by dependent students at the middle and higher income levels.

Between 1989–90 and 1992–93, before the

changes in the loan programs, borrowing rates had

increased only in the lowest income quartile (figure D). After the changes, there was no further

increase in the lowest income quartile, but there

were higher borrowing rates of subsidized loans in

the second income quartile, of both subsidized and

unsubsidized loans in the third income quartile,

and of unsubsidized loans in the highest income

quartile.

The average loan received by dependent students increased by $500 (from $2,200 to $2,700)

from 1989–90 to 1992–93, before the loan limits

were raised. In that period, the percentage of dependent borrowers with the maximum loan

amounts increased from one-third to one-half.

Between 1992–93 and 1995–96, when the loan

limits were higher and those who did not qualify

for the maximum subsidized loan could

Figure C—Percentage distribution of undergradFigure C—uate Stafford/Supplemental Loans to

Figure C—Students (SLS) recipients with subsiFigure C—dized, unsubsidized, or a combination

Figure C—of both loans, by dependency in 1989–

Figure C—90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center

for Education Statistics, National Postsecondary Student

Aid Study, 1989–90 (NPSAS:90), 1992–93 (NPSAS:93),

1995–96 (NPSAS:96), Undergraduate Data Analysis

Systems.

Dependent

97 96

68

1

2 4

1

0

20

40

60

80

100

1989–90 1992–93 1995–96

Year

Percent

16

15

Independent

75 72

47

25

47

21

4 2 6

0

20

40

60

80

100

1989–90 1992–93 1995–96

Year

Percent

 Unsubsidized only Both Subsidized 
Executive Summary

vi

supplement it with an unsubsidized loan, the average total loan increased again by $700 to $3,400.

The percentage borrowing the maximum amount

rose to nearly 60 percent.

Independent Borrowers

Although unsubsidized loans had been generally available to independent students in 1992–93,

the percentage obtaining them doubled in 1995–96

(from 5 percent to 11 percent). In the earlier years,

about one-fourth of the independent student borrowers had unsubsidized loans, usually in combination with subsidized loans. In 1995–96, this

proportion had doubled, and one-half of the independent student borrowers now had unsubsidized

loans (figure C). Independent borrowers in the

highest income quartile (over $35,000) were the

most likely to take out unsubsidized loans, either

alone (27 percent) or in combination with a subsidized loan (44 percent). However, about one-half

of the borrowers in the other three income quartiles also obtained unsubsidized loans, usually in

combination with subsidized loans.

Because independent students could receive a

combination of subsidized and unsubsidized loans

with higher limits, their average loan amounts

were higher than those of dependent students in

all three years (figure B). However, independent

students did not typically borrow as much as the

loan limits. About one-half of the independent

students borrowed the maximum subsidized

amounts (which were interest-free while enrolled)

in all three years. The percentage who borrowed

the maximum combined total (up to $8,000 before

1993, then up to $10,500) was much lower, but it

did increase from just 3 percent in 1989–90 to 13

percent in 1995–96.

The large increase in the proportion of independent student borrowers who took out unsubsidized loans in addition to subsidized loans (from

about one-fourth in 1992–93 to about one-half in

1995–96) may be related in part to the organizational changes in the Stafford loan program. Unsubsidized loans were available to independent

students in 1992–93 and earlier through the SLS

Figure D—Percentage of all dependent underFigure D—graduates receiving Stafford Loans or

Figure D—Supplemental Loans to Students (SLS)

Figure D—by family income quartiles in 1989–90,

Figure D—1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center

for Education Statistics, National Postsecondary Student

Aid Study, 1989–90 (NPSAS:90), 1992–93 (NPSAS:93),

1995–96 (NPSAS:96), Undergraduate Data Analysis

Systems.

23

29

24

34 33 33 34 35

0

10

20

30

40

50

Lowest (less than

$25,000)

Second

($25,000–$46,500)

Income quartile

Percent

1989–90 subsidized

1992–93 subsidized

1995–96 subsidized

1995–96 subsidized and unsubsidized

16

6

16

11

24

9

30

20

0

10

20

30

40

50

Third

($46,500–$70,000)

Highest (more than

$70,000)

Income quartile

Percent
Executive Summary

vii

program, but required filing a separate application

in addition to the application for a subsidized Stafford loan. When unsubsidized loans became available through the same Stafford loan program, they

were processed as part of the same application

used for subsidized loans, and applicants were

notified of the amount of unsubsidized loans for

which they qualified.

Borrowing at Different Types of

Institutions

In any particular year, borrowing rates reflected differences in the average tuition levels at

public 2-year, public 4-year institutions, and private, not-for-profit 4-year institutions. Students

were least likely to borrow at relatively lowtuition community colleges, more likely to borrow

at public 4-year institutions where average tuition

is about three times higher, and even more likely

to borrow at private, not-for-profit 4-year institutions where average tuition is about three times

higher than at public 4-year institutions. The highest borrowing rates in all three years were among

students at private, for-profit institutions, which

charged relatively high tuition and also enrolled

large proportions of low-income students attending full-time.

The percentage of all undergraduates with Stafford/SLS loans at public 2-year institutions remained low (6 percent or less) in all three years,

although there was an increase in the percentage

of full-time, full-year students obtaining loans

(from 9 percent in 1989–90 to 14 percent in 1995–

96). At the private, for-profit institutions the borrowing rates dropped between 1989–90 and 1992–

93, but remained higher than all other sectors

(about 50 percent of all students borrowed). As a

result of regulatory changes which restricted participation in the Stafford loan program of institutions with high default rates, the proportion of

students attending private, for-profit institutions

dropped from 29 percent of all borrowers in 1989–

90 to 12 percent in 1995–96.

At the 4-year colleges and universities there

was a large growth in the percentage of all undergraduates borrowing between 1992–93 and 1995–

96, both at the public institutions (from 23 percent

to 35 percent) and at the private, not-for-profit

institutions (from 33 percent to 43 percent). In

1995–96, about 70 percent of all undergraduates

receiving Stafford loans were attending 4-year

institutions (45 percent at public, and 26 percent

at private, not-for-profit institutions).

Tuition and Borrowing at 4-Year

Institutions

At the public 4-year institutions, the average

tuition for full-time, full-year undergraduates increased by $800 between 1989–90 and 1992–93

(from $2,200 to $3,000), and by another $800 in

1995–96 (to $3,800). The change in the percentage of full-time, full-year dependent students with

Stafford/SLS loans was 6 percentage points in the

first period (from 18 to 24 percent), and then 15

percentage points in the second period (from 24 to

39 percent). The average loan increased by $600

in the first period (from $2,100 to $2,700), and

then by $1,000 in the second period (from $2,700

to $3,700). The increases in tuition were the same

in both periods, but the increases in borrowing

were much greater in the second period. Borrowing increases and tuition increases were not proportional, in part because there were more

restrictions on participation in the loan programs

during the first period than during the second one.

Over the six-year period, the borrowing rates of

full-time, full-year undergraduates at public 4-year

institutions did not vary directly with tuition levels

(figure E). The percentage of students borrowing
Executive Summary

viii

was about the same at all levels of tuition in each

of the three years. Borrowing rates of students

increased to similar levels no matter what the level

of tuition was.

A similar pattern is found among full-time,

full-year undergraduates at private, not-for-profit

4-year institutions. Average tuition was $8,900,

$11,100, and $12,600 in the three years, respectively. While the tuition increase was greater during the first period than the second, borrowing

rates and average loan amounts were greater in the

second period. There was also no direct relationship between borrowing rates and the level of tuition within each academic year. With some

exceptions, borrowing rates increased to similar

levels whether tuition was relatively low or relatively high.

The annual increases in the size of loans resulted in much higher total cumulative amounts

for college seniors at both types of 4-year institutions. Between 1992–93 and 1995–96, the cumulative loan amount for fourth and fifth-year

undergraduates at public 4-year institutions grew

from $7,000 to $11,000. At private, not-for-profit

4-year institutions, the cumulative loan amount for

seniors grew from $9,000 in 1992–93 to $13,100

in 1995–96.

Summary

The changes in the loan programs and federal

need analysis resulting from the Reauthorization

of 1992 allowed for an increased participation of

middle- and higher-income dependent students in

the Stafford loan program, and to borrow larger

amounts. Undergraduates who were independent

students took out larger loans, primarily because

of a large increase in the proportion of borrowers

who obtained unsubsidized loans in addition to

their subsidized ones. The increase in unsubsidized loans to independent students was facilitated

when the separate SLS program was replaced by

unsubsidized loans available through the Stafford

program in the same loan application process.

Figure E—Percentage of full-time, full-year undergraduates receiving Stafford Loans or Supplemental Loans

Figure E—to Students (SLS) by tuition and fees charged in 1989–90, 1992–93, and 1995–96: Public 4-year

Figure E—institutions

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

22 26 26 28

19

25

33 34 31 26

43

49 47 43

37

0

10

20

30

40

50

60

70

Less than $2,000 $2,000–2,999 $3,000–3,999 $4,000–4,999 $5,000 or more

Tuition and fees*

Percent

1989–90 1992–93 1995–96
Executive Summary

ix

The level of student borrowing at the different

types of institutions was directly related to the

average level of tuition (with the exception of the

private, for-profit institutions). However, the relationship between tuition levels and borrowing

within types of institutions was not as direct as

these general patterns suggest. Within both public

and private, not-for-profit 4-year institutions, the

borrowing rates of full-time, full-year undergraduates did not vary directly with tuition levels. In

fact, over the six-year period, with a few exceptions, borrowing rates increased to similar levels

over time at nearly all tuition levels.
x

Foreword

This study compares the borrowing patterns of undergraduates surveyed in the National

Postsecondary Student Aid Studies of 1989–90, 1992–93, and 1995–96 (NPSAS:90, NPSAS:93,

and NPSAS:96) who received federal Stafford or Supplemental Loans to Students (SLS) loans. It

is based on federal student loan data from the National Student Loan Data System (NSLDS),

which has been used to supplement the NPSAS survey data of student financial aid, background

characteristics, and enrollment patterns. The primary purpose of the study is to examine the effects of the changes in federal student loan programs resulting from the 1992 Reauthorization of

the Higher Education Act, which increased both the number of students who qualified for loans

and the amounts that they could borrow. In addition, the supplemental tables in this report provide a descriptive overview of the augmented and revised federal student loan data now available

in the NPSAS:90 and NPSAS:93 data sets.

Unless otherwise specified, all reported estimates and percentages were produced using the

NPSAS:90, NPSAS:93, and NPSAS:96 Data Analysis Systems (DAS). The DAS is a Windows-based application that allows users to specify and generate their own tables from the

NPSAS data, and is available for public use through the NCES website. The DAS produces standard errors that are adjusted to take into account the complex sampling design of the NPSAS

surveys. These standard errors were used to test the statistical significance of all reported differences in estimates. Additional information about the DAS may be found in appendix C of this

report and on the NCES website at http://nces.ed.gov/das.
xi

Acknowledgments

The author wishes to thank all those who reviewed the report and contributed to its final

production. Paula Knepper at NCES provided a thorough substantive and methodological review.

The following people reviewed the final report: at NCES Steve Broughman, Dennis Carroll,

Christopher Chapman, Michael Cohen, Drew Malizio, and Bruce Taylor; Dan Madzelan (Performance Based Organization at U.S. Department of Education) and Kenneth Redd (Sallie Mae)

also reviewed the final report.

At MPR Associates, Laura Horn reviewed the report and provided analytic support; Barbara Kridl and Helen Jang coordinated the production of the document; Andrea Livingston edited

the report; and Francesca Tussing, Erika Collin, and Karyn Madden produced the report.
THIS PAGE INTENTIONALLY LEFT BLANK
xiii

Table of Contents

Page

Executive Summary ................................................................................................................. iii

Foreword................................................................................................................................... x

Acknowledgments..................................................................................................................... xi

List of Tables ............................................................................................................................ xiv

List of Figures...........................................................................................................................xviii

Introduction.............................................................................................................................. 1

Background on Federal Student Loans................................................................................. 1

Student Loan Demand and Supply....................................................................................... 4

Trends in Subsidized and Unsubsidized Loans..................................................................... 13

Dependent and Independent Students .................................................................................. 15

Borrowing by Income........................................................................................................... 19

Borrowing Trends by Types of Institution ............................................................................ 23

Tuition and Borrowing at 4-Year Institutions....................................................................... 29

Public 4-Year Institutions..................................................................................................... 29

Private, Not-for-Profit 4-Year Institutions ........................................................................... 35

Summary and Conclusions...................................................................................................... 41

Appendix A—Supplemental Tables ....................................................................................... 43

Appendix B—Glossary ............................................................................................................ 77

Appendix C—Technical Notes and Methodology ................................................................. 83
xiv

List of Tables

Table Page

1 Federal Stafford Loans and Supplemental Loans to Students (SLS) program

characteristics, 1987–93 and 1993–1999 ........................................................................ 4

2 Annual and cumulative loan limits for undergraduate federal Stafford Loans and

Supplemental Loans to Students (SLS)........................................................................... 7

All Institutions

1.1 Percentage of all undergraduates who received any federal Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96 .............................................................................................. 44

1.2 Percentage of all undergraduates who received federal subsidized Stafford loans, and

the average amount borrowed in 1989–90, 1992–93, and 1995–96 ............................... 45

1.3 Percentage of all undergraduates who received federal unsubsidized Stafford Loans or

Supplemental Loans to Students (SLS) and the average amount borrowed in 1989–90,

1992–93, and 1995–96 .................................................................................................... 46

1.4 Percentage of full-time, full-year undergraduates who received any federal Stafford

Loans or Supplemental Loans to Students (SLS) and the average amount borrowed in

1989–90, 1992–93, and 1995–96: All institutions.......................................................... 47

1.5 Percentage of full-time, full-year undergraduates who received federal subsidized

Stafford loans, and the average amount borrowed in 1989–90, 1992–93, and 1995–96:

All institutions................................................................................................................. 48

1.6 Percentage of full-time, full-year undergraduates who received federal unsubsidized

Stafford Loans or Supplemental Loans to Students (SLS), and the average amount

borrowed in 1989–90, 1992–93, and 1995–96: All institutions...................................... 49

1.7 Percentage of undergraduates with subsidized Stafford loans and percentage of

undergraduates with any Stafford Loans or Supplemental Loans to Students (SLS)

who borrowed the maximum annual amounts in 1989–90, 1992–93, and 1995–96: All

institutions....................................................................................................................... 50
List of Tables

xv

Table Page

1.8 Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who had ever

received federal Stafford Loans or Supplemental Loans to Students (SLS), and the

average cumulative amount borrowed: All institutions .................................................. 51

Public 4-Year Institutions

2.1 Percentage of all undergraduates who received federal Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Public 4-year institutions.................................................... 52

2.2 Percentage of all undergraduates who received federal subsidized Stafford loans, and

the average amount borrowed in 1989–90, 1992–93, and 1995–96: Public 4-year

institutions....................................................................................................................... 53

2.3 Percentage of all undergraduates who received federal unsubsidized Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Public 4-year institutions.................................................... 54

2.4 Percentage of full-time, full-year undergraduates who received any federal Stafford

Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in

1989–90, 1992–93, and 1995–96: Public 4-year institutions.......................................... 55

2.5 Percentage of full-time, full-year undergraduates who received federal subsidized

Stafford loans, and the average amount borrowed in 1989–90, 1992–93, and 1995–96:

Public 4-year institutions................................................................................................. 56

2.6 Percentage of full-time, full-year undergraduates who received federal unsubsidized

Stafford Loans or Supplemental Loans to Students (SLS), and the average amount

borrowed in 1989–90, 1992–93, and 1995–96: Public 4-year institutions ..................... 57

2.7 Percentage of undergraduates with subsidized Stafford loans and percentage of

undergraduates with any Stafford Loans or Supplemental Loans to Students (SLS)

who borrowed the maximum annual amounts in 1989–90, 1992–93, and 1995–96:

Public 4-year institutions................................................................................................. 58

2.8 Percentage of all undergraduates attending in 1989–90, 1992–93, and 1995–96 who

had ever received federal Stafford Loans or Supplemental Loans to Students (SLS),

and the average cumulative amount borrowed: Public 4-year institutions...................... 59

2.9 Percentage of 4th or 5th year seniors in 1989–90, 1992–93, and 1995–96 who had

ever received federal Stafford Loans or Supplemental Loans to Students (SLS), and

the average cumulative amount borrowed: Public 4-year institutions ............................ 60
List of Tables

xvi

Table Page

Private, Not-for-Profit 4-Year Institutions

3.1 Percentage of all undergraduates who received any federal Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions ........................... 61

3.2 Percentage of all undergraduates who received federal subsidized Stafford loans, and

the average amount borrowed in 1989–90, 1992–93, and 1995–96: Private, not-forprofit 4-year institutions .................................................................................................. 62

3.3 Percentage of all undergraduates who received federal unsubsidized Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions ........................... 63

3.4 Percentage of full-time, full-year undergraduates who borrowed any federal Stafford

Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in

1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions ................ 64

3.5 Percentage of full-time, full-year undergraduates who received federal subsidized

Stafford loans, and the average amount borrowed in 1989–90, 1992–93, and 1995–96:

Private, not-for-profit 4-year institutions ........................................................................ 65

3.6 Percentage of full-time, full-year undergraduates who received federal unsubsidized

Stafford Loans or Supplemental Loans to Students (SLS), and the average amount

borrowed in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year

institutions....................................................................................................................... 66

3.7 Percentage of undergraduates with subsidized Stafford loans and percentage of

undergraduates with any Stafford Loans or Supplemental Loans to Students (SLS)

who borrowed the maximum annual amounts in 1989–90, 1992–93, and 1995–96:

Private, not-for-profit 4-year institutions ........................................................................ 67

3.8 Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who had ever

received federal Stafford Loans or Supplemental Loans to Students (SLS), and the

average cumulative amount borrowed: Private, not-for-profit 4-year institutions.......... 68

3.9 Percentage of 4th and 5th year seniors in 1989–90, 1992–93, and 1995–96 who had

ever received federal Stafford Loans or Supplemental Loans to Students (SLS), and

the average cumulative amount borrowed: Private, not-for-profit 4-year institutions.... 69
List of Tables

xvii

Table Page

Public 2-Year Institutions

4.1 Percentage of all undergraduates who received any federal Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Public 2-year institutions.................................................... 70

4.2 Percentage of all undergraduates who received federal subsidized Stafford loans, and

the average amount borrowed in 1989–90, 1992–93, and 1995–96: Public 2-year

institutions....................................................................................................................... 71

4.3 Percentage of all undergraduates who received federal unsubsidized Stafford Loans or

Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–

90, 1992–93, and 1995–96: Public 2-year institutions.................................................... 72

4.4 Percentage of full-time, full-year undergraduates who received any federal Stafford

Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in

1989–90, 1992–93, and 1995–96: Public 2-year institutions.......................................... 73

4.5 Percentage of undergraduates with subsidized Stafford loans and percentage of

undergraduates with any Stafford Loans or Supplemental Loans to Students (SLS)

who borrowed the maximum annual amounts in 1989–90, 1992–93, and 1995–96:

Public 2-year institutions................................................................................................. 74

4.6 Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who ever

received federal Stafford Loans or Supplemental Loans to Students (SLS), and the

average cumulative amount borrowed: Public 2-year institutions .................................. 75

Appendix Table

C1 Standard errors for table 1.1: Percentage of all undergraduates who received any

federal Stafford Loans or Supplemental Loans to Students (SLS), and the average

amount borrowed in 1989–90, 1992–93, and 1995–96................................................... 85
xviii

List of Figures

Figure Page

Executive Summary Figures

A Percentage of all undergraduates receiving subsidized, unsubsidized, and any Stafford

Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96.. iv

B Average subsidized, unsubsidized, and total Stafford Loans or Supplemental Loans to

Students (SLS) received in 1989–90, 1992–93, and 1995–96 ........................................ iv

C Percentage distribution of undergraduate Stafford/Supplemental Loans to Students

(SLS) recipients with subsidized, unsubsidized, or a combination of both loans, by

dependency in 1989–90, 1992–93, and 1995–96 ............................................................ v

D Percentage of all dependent undergraduates receiving Stafford Loans or Supplemental

Loans to Students (SLS) by family income quartiles in 1989–90, 1992–93, and 1995–

96..................................................................................................................................... vi

E Percentage of full-time, full-year undergraduates receiving Stafford Loans or

Supplemental Loans to Students (SLS) by tuition and fees charged in 1989–90, 1992–

93, and 1995–96: Public 4-year institutions.................................................................... viii

Text Figures

1 Percentage of all undergraduates receiving subsidized, unsubsidized, and any Stafford

Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96.. 14

2 Average subsidized, unsubsidized, and total Stafford Loans or Supplemental Loans to

Students (SLS) received in 1989–90, 1992–93, and 1995–96 ........................................ 14

3 Percentage of all dependent and independent undergraduates receiving subsidized,

unsubsidized, and any Stafford Loans or Supplemental Loans to Students (SLS) in

1989–90, 1992–93, and 1995–96 .................................................................................... 15

4 Percentage distribution of undergraduate Stafford/Supplemental Loans to Students

(SLS) recipients with subsidized, unsubsidized or a combination of both loans, by

dependency in 1989–90, 1992–93 and 1995–96 ............................................................. 16
List of Figures

xix

Figure Page

5 Average subsidized, unsubsidized, and total Stafford Loans or Supplemental Loans to

Students (SLS) received by dependent and independent undergraduates in 1989–90,

1992–93, and 1995–96 .................................................................................................... 17

6 Percentage of federal Stafford Loans/Supplemental Loans to Students (SLS)

undergraduate recipients who borrowed the maximum annual subsidized and the

combined total (subsidized and unsubsidized) amounts in 1989–90, 1992–93, and

1995–96........................................................................................................................... 18

7 Percentage of all dependent undergraduates receiving Stafford Loans or Supplemental

Loans to Students (SLS) by family income quartiles in 1989–90, 1992–93, and 1995–

96..................................................................................................................................... 19

8 Percentage of all independent undergraduates receiving Stafford Loans or

Supplemental Loans to Students (SLS) by income quartiles in 1989–90, 1992–93, and

1995–96........................................................................................................................... 20

9 Percentage distribution of undergraduate Stafford Loans/Supplemental Loans to

Students (SLS) recipients with subsidized, unsubsidized or a combination of both

loans, by dependency and income quartiles in 1995–96 ................................................. 21

10 Percentage of all undergraduates receiving federal Stafford Loans or Supplemental

Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96 by type of institution

attended ........................................................................................................................... 23

11 Average amount of federal Stafford Loans or Supplemental Loans to Students (SLS)

received by all undergraduates in 1989–90, 1992–93, and 1995–96 by type of

institution attended .......................................................................................................... 24

12 Average tuition and fees for full-time, full-year undergraduates by type of institution

attended in 1989–90, 1992–93, and 1995–96 ................................................................. 26

13 Distribution of all undergraduates and of all undergraduates receiving Stafford Loans

or Supplemental Loans to Students (SLS) by type of institution attended in 1989–90,

1992–93, and 1995–96 .................................................................................................... 27

14 Average amount of Stafford Loans and Supplemental Loans to Students (SLS), grants

received, and average tuition paid by full-time, full-year undergraduates in 1989–90,

1992–93, and 1995–96: Public 4-year institutions.......................................................... 29

15 Percentage of all undergraduates and of full-time, full-year undergraduates receiving

federal Stafford Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–

93, and 1995–96 by dependency: Public 4-year institutions ........................................... 30
List of Figures

xx

Figure Page

16 Average total Stafford Loans/Supplemental Loans to Students (SLS) received by fulltime, full-year undergraduates in 1989–90, 1992–93, and 1995–96: Public 4-year

institutions....................................................................................................................... 31

17 Distribution of all undergraduates and full-time, full-year undergraduates by tuition

and fees charged in 1989–90, 1992–93, and 1995–96: Public 4-year institutions.......... 32

18 Percentage of full-time, full-year undergraduates receiving Stafford Loans or

Supplemental Loans to Students (SLS) by tuition and fees charged in 1989–90, 1992–

93, and 1995–96: Public 4-year institutions.................................................................... 33

19 Cumulative total Stafford/Supplemental Loans to Students (SLS) borrowed by class

level in 1989–90, 1992–93, and 1995–96: Public 4-year institutions............................. 34

20 Average amount of Stafford Loans and Supplemental Loans to Students (SLS), grants

received, and average tuition paid by full-time, full-year undergraduates in 1989–90,

1992–93, and 1995–96: Private, not-for-profit 4-year institutions ................................. 35

21 Percentage of all undergraduates and of full-time, full-year undergraduates receiving

federal Stafford Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–

93, and 1995–96 by dependency: Private, not-for-profit 4-year institutions................... 36

22 Average total Stafford Loans/Supplemental Loans to Students (SLS) received by fulltime, full-year undergraduates in 1989–90, 1992–93, and 1995–96: Private, not-forprofit 4-year institutions .................................................................................................. 36

23 Distribution of all undergraduates and full-time, full-year undergraduates by tuition

and fees charged in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year

institutions....................................................................................................................... 37

24 Percentage of full-time, full-year undergraduates receiving Stafford Loans or

Supplemental Loans to Students (SLS) by tuition and fees charged in 1989–90, 1992–

93, and 1995–96: Private, not-for-profit 4-year institutions ........................................... 38

25 Cumulative total Stafford/Supplemental Loans to Students (SLS) borrowed by class

level in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions..... 39
1

Introduction

One of the most notable trends in student financial aid during the 1990s was the rise in the

dollar volume of federal student loans, which doubled from about $13 billion in 1989–90 to

about $28 billion in 1995–96, and was estimated to be about $34 billion in 1997–98.1 Nearly 90

percent of these funds were received by students as Stafford or SLS (Supplemental Loans to Students) loans, which is the focus of this report.2 This introduction will describe some of the general characteristics of the Stafford and SLS loans and the federal programs under which they

were and are currently administered. It also discusses the concept of student loan demand and

supply which is used as a conceptual framework for the analysis.

Background on Federal Student Loans

Subsidized and Unsubsidized Loans

There are two broad categories of federal student loans, subsidized and unsubsidized. The

difference between the two concerns whether borrowers are charged interest on the loans while

they are still enrolled as students. For subsidized loans students are not charged interest while

they are enrolled. The federal government subsidizes the cost of the loans by paying the interest

as long as they are students. For unsubsidized loans the federal government does not pay any of

the interest for the students. Interest charges begin to accrue as soon as they are enrolled, and the

accrued interest is added to the principal of the loan as long as they are students. When the repayment period begins after the student has left school, the amount owed on a loan that is subsidized will be the same as the principal borrowed; the amount owed on a loan that is unsubsidized

will be the original principal amount plus the accrued interest. For example, a college senior who

borrowed $2,500 a year for 4 years in subsidized loans would owe $10,000 upon graduation. If

the loans were not subsidized and accruing interest at about 7 percent annually, the senior would

owe nearly $12,000.

 

1The College Board, Trends in Student Aid 1998 (Washington, D.C.: 1998). These totals include all federal loan programs and

both graduate and undergraduate borrowers.

2Calculated from data in Trends in Student Aid 1998. The other smaller federal student loan programs are PLUS loans for parents, Perkins loans, and loans to students in the health professions.
Introduction

2

In order to qualify for subsidized loans, students must demonstrate financial need. Federal

need analysis will be discussed in more detail below. In general, low-income students have a

greater need for financial aid than higher income students do, and those at higher tuition institutions have a greater need then those attending lower tuition institutions. Unsubsidized loans, on

the other hand, may be obtained without demonstrating financial need. Depending on their need

and total educational expenses, students may qualify either for subsidized or for unsubsidized

loans, or for a combination of the two.

Dependent and Independent Students

In evaluating the need for financial aid, students are categorized as either dependent or independent. Most undergraduates under age 24 are assumed to be dependent on their parents and

supported by them while enrolled. Those undergraduates who are 24 or older and all others who

are married, have children of their own, are veterans or orphans, or can demonstrate to the satisfaction of financial aid administrators that they are self-supporting are assumed to be independent of their parents for financial support. For dependent students, the income of the parents is a

major consideration in determining the need for financial aid; for independent students, only the

income of the student (and spouse) is considered.

Federal loans have annual limits, meaning there is a maximum amount that may be borrowed by students in a given academic year. There are different limits for subsidized and for unsubsidized loans, and the combination of the two. Independent students have been allowed to

borrow approximately twice as much as dependent students by combining subsidized and unsubsidized loans. The rationale for this provision is that additional loan funds are available to dependent students through their parents, while independent students are not expected to be able to

rely on their parents for additional financial assistance.

Stafford/SLS Loans Before and After the Reauthorization of 1992

Congress revises the provisions for the federal financial aid programs every five or six

years by amending the Higher Education Act, which is known as Reauthorization. Changes in the

programs resulting from a Reauthorization are usually fully implemented in the following academic year.3

 

3Various provisions go into effect at different times and do not correspond to the full academic years. Many of the changes in the

loan programs actually go into effect on October 1 of the year of the Reauthorization, which is the beginning of the federal fiscal

year. However, more than three-fourths of the student loans for a given academic year are processed before October, so that the

full effect of the changes is not evident until the following academic year.
Introduction

3

The Reauthorization of 1986 established the provisions for the federal student loan programs that were in effect during the six academic years from 1987–88 to 1992–93. During this

period the major federal student loan program consisted of guaranteed student loans called Stafford loans. Banks and other lenders provided the funds for Stafford loans, but they were guaranteed against default by the federal government through state and national guaranty agencies.

Between 1987 and 1993 all Stafford loans were subsidized and available to both dependent and

independent students on the basis of need. Unsubsidized loans were also available through a

separate federal guaranteed student loan program called Supplemental Loans for Students (SLS).

SLS loans were primarily intended to allow independent students to supplement the Stafford loan

amounts, although some dependent undergraduates with exceptional need could also qualify.4 In

this report the two programs will be treated together and referred to as Stafford/SLS loans.

The Reauthorization of 1992 and additional legislation in the following year made substantial changes in the structure of the federal Stafford/SLS loan programs, generally beginning with

the 1993–94 academic year.5 The separate SLS program was phased out and replaced by unsubsidized Stafford loans, which were made generally available to dependent as well as independent

students. Loan limits were also increased for most students. The existing system of guaranteed

loans funded by lenders was continued, but renamed the Federal Family Education Loan Program

(FFELP). In addition, the William D. Ford Direct Loan Program was established as an alternative

system of processing Stafford loans. Instead of using lenders and guaranty agencies as intermediaries, the institutions participating in this program were able to process Stafford loans entirely on

campus with funds provided directly from the federal government through the Department of

Education.

The names of the federal student loan programs and some of their features before and after

1993 are outlined in Table 1. Although the FFELP and Ford Direct loan programs offer alternative ways to supply funds and to deliver loans to students, there are no major differences in the

terms and conditions of the Stafford loans that both provide. The names of the loans and programs after 1993 were retained in the 1998 Reauthorization of the Higher Education Act, which

did not make any major changes to the structure of the programs, the eligibility requirements, or

the loan limits.

 

4Dependent undergraduates whose parents applied, but were rejected, for federal parent PLUS loans (which require meeting

creditworthiness criteria) were able to qualify for SLS loans. This provision was continued after 1993 and is still in effect, allowing some dependent students to obtain unsubsidized Stafford loans at the independent student maximum amounts.

5Unsubsidized Stafford loans were available through the FFELP program after October 1992. The SLS loan program continued

through 1993–94. The Ford Direct Loan program actually began disbursing loans in 1994–95.
Introduction

4

Table 1—Federal Stafford Loans and Supplemental Loans to Students (SLS) program characteristics, 

Table 1—1987–93 and 1993–1999

Source of funds/

Academic years Name of loans Eligible students Student loan program loan processing

 

1987–88 to Stafford loans Dependent and Guaranteed Student Banks, other lenders/

1992–93 (subsidized) independent students Loan Program guaranty agencies

 

 SLS loans Primarily Supplemental Loans Banks, other lenders/

 (unsubsidized) independent students to Students guaranty agencies

1993–94 to Subsidized Stafford Dependent and Federal Family Banks, other lenders/

1998–99 loans independent students Education Loan guaranty agencies

(and after) Program (FFELP) 

 William D. Ford U.S. Department

 Direct Loan Program of Education

 Unsubsidized Stafford Dependent and Federal Family Banks, other lenders/

 loans independent students Education Loan guaranty agencies

 Program (FFELP) 

William D. Ford U.S. Department

Direct Loan Program of Education

SOURCE: U.S. Department of Education, The Student Guide to Financial Aid, annual.

Student Loan Demand and Supply

Student borrowing patterns may be understood in terms of the basic principles of demand

and supply. The demand for loans by students is related to such factors as the levels of tuition

and other educational expenses, the student’s family income, and the availability of grants and

other types of financial aid. In general, it is to be expected that the demand for student loans will

be high when tuition levels are high, family incomes are low, and alternative sources of financial

aid are limited. Increases in student borrowing may be attributed to broad trends that have raised

the demand for student loans, especially by comparing average tuition levels with changes in median family incomes and the amount of grant aid received by students. For example, when measured in constant dollars, during the last decade median family income has remained stable and

the average federal and state grant amounts have decreased slightly. By contrast, during the same

10 years, undergraduate college tuition levels have increased by 40 to 50 percent.6 These trends

support a demand-side explanation for the increase in federal student loans: tuition has increased

 

6The College Board, Trends in Student Aid 1998 (Washington, D.C.:1998).
Introduction

5

faster than both incomes and grants, so more students have taken out loans and borrowed larger

amounts to help cover their expenses.7

The factors related to the student demand for loans (tuition, income, and grants) will be examined below. Although they are important, they are not sufficient to explain changes in borrowing patterns. This is due in part to the limited supply of federal loans available to students and

to the requirements for participating in the student loan programs. The requirements are normally

specified and changed in the Reauthorization legislation, which establishes the general rules for

the federal financial aid programs. The supply of loans available to students can be expanded or

contracted by changing the parameters of the federal loan programs in three primary areas: restrictions by dependency, loan limits, and need analysis. The Reauthorization of 1992 made important changes in all three of these areas that resulted in expanded participation in the Stafford

loan programs and increased the amounts that could be borrowed, generally beginning with the

1993–94 academic year.8

Dependency and Unsubsidized Loans

Prior to 1993–94, dependent students were generally not eligible to participate in the SLS

program of unsubsidized loans, which had the primary purpose of making supplemental loan

funds available to independent students. After 1993–94, the SLS program was phased out and

unsubsidized loans became available to both dependent and independent students through the

Stafford programs. As before, qualification for unsubsidized loans was not restricted by financial

aid need and unsubsidized loans could either be obtained to supplement subsidized Stafford loans

or separately. Since about one–half of all undergraduates are dependent students, this change effectively doubled the number of students who could have qualified for unsubsidized Stafford

loans in 1993–94.

There are very few restrictions on participation in the unsubsidized Stafford loan program.

The major restriction is that students must be enrolled at least half time (this is typically two or

more courses), which is also a requirement for subsidized Stafford loans. About one-fifth (18

 

7For example, see U.S. General Accounting Office, Higher Education: Tuition Increasing Faster Than Household Income and

Public Colleges’ Costs (Washington, D.C.: 1996) and U.S. General Accounting Office, Higher Education: Students Have Increased Borrowing and Working to Help Pay Higher Tuitions (Washington, D.C.: 1998).

8Kenneth Redd, “The Changing Characteristics of Undergraduate Borrowers,” in Financing a College Education: How It Works,

How It’s Changing, ed. Jacqueline King (Phoenix: American Council of Education/Oryx Press, 1999), provides a good summary

of the 1992 Reauthorization and an analysis of the effects of the changes on borrowers. The importance of the expanded supply

of loans is emphasized in J. King, “Student Borrowing: Is There a Crisis?,” in Student Loan Debt: Problems and Prospects

(Washington, D.C.: The Institute for Higher Education Policy/Sallie Mae Education Institute/The Education Resources Institute,

1998).
Introduction

6

percent) of all undergraduates were enrolled less than half-time in 1995–96.9 This requirement

excludes about 10 percent of the undergraduates at 4-year institutions from unsubsidized Stafford

loans, and about 30 percent at public 2-year institutions, where there are large numbers of parttime students who are enrolled in only one course.10

Even though unsubsidized Stafford loans are not restricted by need, students may borrow

only what is required to cover their educational expenses after any other aid. This restriction has

little practical effect on participation in the program, since less than 5 percent of all undergraduates receive enough financial aid to cover their entire student budget.11 However, it may limit the

amount that they can borrow. In 1995–96, approximately three-fourths of all undergraduates were

not affected by these restrictions and could have qualified for unsubsidized Stafford loans.

Annual and Cumulative Loan Limits

There are two types of limits on Stafford/SLS loan amounts, the annual maximum amount

that students may receive during one academic year and the cumulative maximum that they may

receive for their entire undergraduate education. The annual limits vary by the student’s class

level.12 There are separate limits for subsidized and for unsubsidized loans and separate limits

based on dependency for the combined total of the two types of loans. The cumulative maximum

allows students to borrow the annual maximum at each successive class level up to a fifth year of

undergraduate education. However, students who borrow less in some years may continue to take

out loans over a longer period of time. The loan limits in effect from 1987–88 to 1992–93 are

compared to those in effect since 1993–94 in table 2.

The annual subsidized Stafford loan limits are the same for dependent and independent undergraduates. From 1987–88 to 1992–93, first- and second-year students had an annual subsidized Stafford loan limit of $2,625, while upper level undergraduates had an annual limit of

$4,000. The cumulative subsidized loan limit for all undergraduate years was $17,250 for both

dependent and independent students.

Starting in 1993–94, the subsidized Stafford loan limits were raised. The maximum annual

amounts for first-year undergraduates remained the same, but the annual limit for second-year

students was raised by $875 (from $2,625 to $3,500), and the annual limits for upper level undergraduates were raised by $1,500 (from $4,000 to $5,500). The cumulative limit of subsidized

 

91995–96 National Postsecondary Student Aid Study Data Analysis System.

10Ibid.

11Ibid.

12Students who attend less than full time for a full year will have lower annual and cumulative loan limits.
Introduction

7

Table 2—Annual and cumulative loan limits for undergraduate federal Stafford Loans and Supplemental

Table 2—Loans to Students (SLS)

Dependent students Independent students

Subsidized Unsubsidized Subsidized Unsubsidized Combined

1987–88 to 1992–93 Stafford SLS1 Total Stafford SLS Total

Class level

 First-year $2,625 $0 $2,625 $2,625 $4,000 $6,625 

 Second-year 2,625 0 2,625 2,625 4,000 6,625 

 Third-year 4,000 0 4,000 4,000 4,000 8,000 

 Fourth-year 4,000 0 4,000 4,000 4,000 8,000 

 Fifth-year 4,000 0 4,000 4,000 4,000 8,000 

Cumulative total 17,250 0 17,250 17,250 20,000 37,250 

Subsidized Unsubsidized Combined Subsidized Unsubsidized Combined

1993–94 to 1998–99 Stafford Stafford Total2 Stafford Stafford Total3

Class level

 First-year $2,625 $2,625 $2,625 $2,625 $4,000 $6,625 

 Second-year 3,500 3,500 3,500 3,500 4,000 7,500 

 Third-year 5,500 5,500 5,500 5,500 5,000 10,500 

 Fourth-year 5,500 5,500 5,500 5,500 5,000 10,500 

 Fifth-year 5,500 5,500 5,500 5,500 5,000 10,500 

Cumulative total 23,0004 23,000 23,000 23,000 23,000 46,0004

1

Only available to dependent students with exceptional need.

2

Dependents were limited to the maximum amount set for subsidized loans only.

3

Independents could borrow the maximum subsidized amount plus the maximum unsubsidized amount.

4

The yearly maximum amounts add to $22,625 for dependent students and $45,625 for independent students, but the maximums 

stipulated by the regulations are $23,000 and $46,000, respectively (see “Financial Aid Services,” on the College Board website

[www.collegeboard.org]).

SOURCE: U.S. Department of Education, The Student Guide to Financial Aid, annual.

loans for all undergraduate years was raised to $23,000, an increase of almost $6,000 for both

dependent and independent students.

From 1987–88 to 1992–93, unsubsidized loans were generally available only to independent students through the SLS program. The annual maximum was $4,000 at all undergraduate

class levels, and a cumulative total of $20,000 could be borrowed. SLS loans were intended to be

supplementary to subsidized Stafford loans, so first- and second-year independent students could

borrow a combined total of $6,265 annually, and upper division independent undergraduates

could borrow up to $8,000 per year. The combined cumulative loan amount available to independent undergraduates was $37,250, more than two times the amount generally available to dependent undergraduates.
Introduction

8

In 1993–94, the SLS program was phased out and the same type of loans became available

to both dependent and independent students as unsubsidized Stafford loans. However, the annual

loan limits for the combined subsidized and unsubsidized total amount continued to be substantially higher for independent students. As before 1993, qualified independent students could borrow the maximum subsidized amount and the maximum unsubsidized amount. In 1993–94 and

after this was maintained at $6,625 for the first year, raised to $7,500 for the second year, and

$10,500 for the third year or higher, with an undergraduate cumulative combined total of $46,000

for independent undergraduates.13

The combined total for dependent undergraduates, however, was limited to the maximum

amounts set for subsidized loans alone. That is, dependent students could borrow the maximum

subsidized or the maximum unsubsidized amount (which were the same), but not both. For dependent undergraduates the maximum amounts (subsidized, unsubsidized, or combined) were

still $2,625 for the first year, but increased to $3,500 for the second year, and then to $5,500 for

upper division students, with a cumulative total of $23,000. Therefore, as was the case before

1993, the total combined annual and the cumulative loan amounts available to dependent students were about one-half of the amounts available to independent students.

Need Analysis and Subsidized Loans

The subsidized Stafford loans, before and after 1993, were awarded on the basis of need.

Financial aid need is determined by comparing the tuition and other educational expenses to the

student’s ability to pay for them. The sum of tuition and fees and other educational expenses

(books and supplies, housing, food, transportation, and personal expenses) is called the student

budget.14 Student budgets are estimated by institutional financial aid offices for various categories of students based on such factors as their attendance status, dependency, and type of housing.

For full-time, full-year dependent undergraduates the nontuition expenses in the student budgets

averaged approximately $7,000 at 4-year colleges in 1995–96.15

The student’s ability to pay is measured by an index called the expected family contribution (EFC), which is calculated from the information provided by students and their parents on

the federal financial aid application. The EFC is primarily based on income and assets, with adjustments for family size and the number in the family enrolled in postsecondary education.

 

13See “Financial Aid Services,” on the College Board website (www.collegeboard.org).

14The use of the terms “tuition” and “fees” by institutions is arbitrary. Most institutions charge “tuition” for instruction and add

“fees” for administrative and other services or equipment. Students are required to pay both. Some institutions charge only “fees”

which cover both. In this report “tuition” means all of the charges to students required for enrollment.

15U.S. Department of Education, Student Financing of Undergraduate Education: 1995–96 (NCES 98–076) (Washington,

D.C.:1998): 6.
Introduction

9

There are separate formulas to determine the EFC for dependent students (based primarily on parental finances), independent students without dependents, and independent students with dependents.

Whether students qualify for need-based federal aid, and for how much, is determined by

comparing the estimated student budget to the expected family contribution. If the EFC is greater

than the student budget, the student is not eligible for need-based federal aid. If the EFC is less

than the budget, the amount of aid for which the student qualifies is equal to the student budget

minus the EFC. If the student receives grants or other aid, this amount is subtracted from the

need. If there is still need remaining, then that is the amount that may be covered by a subsidized

Stafford loan, but only up to annual limits described above. Many students do not qualify for any

subsidized loan because they have no need, either because the expected family contribution is

higher than the student budget or because other aid covers their need. Others qualify for a subsidized loan, but the need is less than the maximum amount, so they are eligible to borrow less

than the maximum. Others will qualify for the maximum amount, but the need may be greater

than the loan limit. Independent students may then supplement the subsidized loan with unsubsidized amounts. Dependent students who receive the maximum subsidized amount and still have

need may not normally borrow more through the Stafford program.16 Among those who do qualify for subsidized loans, some will choose not to borrow (or not to borrow as much as they could)

and instead rely on other sources of funds. Often this means working at a job while enrolled.

The rules of the federal need analysis, as well as the annual loan limits, therefore restrict the

subsidized Stafford loan amounts available to qualified students with need. The same basic principles of need analysis described above applied before and after 1993, but in that year several

important changes in the way the federal EFC was calculated went into effect as a result of the

Reauthorization of 1992.17 Three of the changes benefited most dependent students by reducing

their EFC. First, home equity was no longer considered in calculating the parents’ expected contribution from assets. Second, parents with annual incomes under $50,000 who filed one of the

short federal tax forms were no longer required to include any other assets in the determination of

the EFC. Third, the amounts that dependent students were expected to contribute from their own

earnings were reduced, and the annual minimum contributions required from all dependent students was eliminated ($700 for first-year students and $900 for all others, whether or not they

had any earnings). In 1995–96, the average EFC for dependent students from families below the

 

16There are exceptions. See note 4 above.

17There were many more changes that affected relatively few applicants which are not discussed here. For example, the deduction for parents with children in private elementary or secondary schools was eliminated in the 1992 Reauthorization.
Introduction

10

median income was about $1,200 lower than in 1992–93, while that of families above the median

increased by less than $1,000.18

Among independent students, the average EFC also fell in the two lowest income quartiles

and increased in the two higher quartiles. However, the changes in need analysis had a mixed effect, depending on the type of independent student. Those who were unmarried without children

and had low incomes benefited from the elimination of the minimum EFC of $1,200 required

from all independents without dependents prior to 1993. However, another change in the 1992

Reauthorization reduced the eligibility of this group for federal Pell grants. Prior to 1993, Pell

grants were awarded on the basis of a separate Pell grant index similar to the EFC, but based on a

formula that was more favorable to independent students. After 1993, the separate index was

eliminated, and Pell grants were awarded on the basis of the same EFC used for all other federal

need analysis. Although the resulting average EFC was lower for this group after 1993 than the

previous non-Pell EFC, it was higher than the former Pell grant index. This meant that single independent students without children became eligible for more need-based aid in general, but less

eligible for Pell grants in particular. Although the average EFC for this group fell by $2,000 between 1992–93 and 1995–96, the percentage of unmarried independent students without dependents receiving Pell grants fell from 26 percent in 1992–93 to 18 percent in 1995–96.19 The

combination of lower EFCs and less Pell grant aid not only increased this group’s eligibility for

subsidized loans, it may also have contributed to their demand for both types of loans to offset

Pell grant losses.

Independent students who were married but had no children saw an increase in the EFC resulting from their reclassification into the same category as single independent students without

children. The assumptions built into the EFC formulas for independent students require a higher

percentage of income to be contributed from those who are categorized as “without” dependents

as from those categorized as “with” dependents.20 The rationale for this difference is that students without dependents have only themselves to support, while those with dependents must

also support a family while they are enrolled. Prior to 1993, a student’s spouse was considered to

be a dependent, and married students without children shared in the benefits of the lower EFC

formula. As part of the 1993 changes, spouses of students were no longer treated as if they were

dependents of the student, and the EFC of married students without children was calculated according to the more rigorous assumptions of the formula applied to those without dependents.

 

181992–93 National Postsecondary Student Aid Study Data Analysis System and 1995–96 National Postsecondary Student Aid

Study Data Analysis System.

191995–96 National Postsecondary Student Aid Study Data Analysis System.

201992–93 National Postsecondary Student Aid Study Data Analysis System. For example, in 1992–93 the average EFC for

those with dependents who were in the two lowest income quartiles were $250 and $600, respectively. For those without dependents the EFC for the comparable two quartiles was $2,400 and $6,000.
Introduction

11

The EFC is a measure of the student’s ability to pay, but the components and assumptions

upon which it is based are subject to change. The modifications in the 1992 Reauthorization reduced the average EFC for students with incomes below the median and kept the average EFC

for dependent students with family incomes above the median lower than it would have been

without these changes. With a combination of rising tuition and falling expected family contributions, average financial aid need increases. This means that a larger percentage of students

could qualify for subsidized Stafford loans, and for larger amounts.
THIS PAGE INTENTIONALLY LEFT BLANK
13

Trends in Subsidized and Unsubsidized Loans

The undergraduates who were enrolled in the academic years 1989–90 and in 1992–93

could participate in the Stafford/SLS loan program under the same rules that were in effect prior

to the Reauthorization of 1992. Changes in borrowing patterns between these years, which will

be referred to as the first period, should therefore be related only to the factors associated with

changes in the demand for student loans, such as tuition, income, and grants. Students who were

enrolled in 1995–96, on the other hand, could borrow under the new Stafford loan provisions,

which made unsubsidized loans available to dependent students, increased the loan limits, and

modified the need analysis to allow more students to qualify for subsidized loans. Changes in

borrowing patterns between 1992–93 and 1995–96, which will be called the second period, are

therefore related to the expanded supply of loan funds available to students as well as to demand

factors.

The effect of the changes in the Stafford/SLS programs in 1993–94 is reflected in the aggregate loan amounts as well as in the student level data in the NPSAS surveys for the three

years. The total amount borrowed by undergraduates through the Stafford/SLS programs increased by $2 billion during the first period, from approximately $8 billion in 1989–90 to $10

billion in 1992–93. During the second period, when the new rules were in effect, the total undergraduate Stafford loan volume increased by $7 billion, to approximately $17 billion in 1995–

96.21

These higher loan volumes may reflect an increase in the number of borrowers, an increase

in the average loan amount, or both. In 1989–90, about 19 percent of all undergraduates received

Stafford/SLS loans and this percentage had not changed in 1992–9322 (figure 1). However, students did borrow more, and the average loan amount increased (in current dollars) from $2,600 to

$3,100 during those years (figure 2). Three years later, when the new loan program rules were in

effect, both the percentage of students borrowing and the average loan amounts had increased. In

1995–96, one-fourth of all undergraduates received Stafford loans and the average loan ($3,900)

was about $800 higher than three years earlier.

 

21These estimates for undergraduates are based on unpublished data from the National Student Loan Data System. Approximately one-fourth of the Stafford/SLS loan amounts were received by graduate and first-professional students.

22Undergraduate enrollments increased from 11.7 million in fall 1989 to 12.5 million in fall 1992, and then declined to 12.2

million in fall 1995. U.S. Department of Education, Digest of Education Statistics 1997 (NCES 98-015) (Washington, DC:1997),

table 187.
Trends in Subsidized and Unsubsidized Loans

14

Figure 1—Percentage of all undergraduates receiving subsidized, unsubsidized, and any Stafford Loans or

Figure 1—Supplemental Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

All undergraduates

3

18 19

3

18 19

10

22

25

0

10

20

30

40

50

Total Stafford/SLS

loans

Subsidized loans Unsubsidized loans

Type of loan

Percent

 1989–90 1992–93 1995–96

Figure 2—Average subsidized, unsubsidized, and total Stafford Loans or Supplemental Loans to Students 

Figure 2—(SLS) received by undergraduates in 1989–90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,500 2,300

2,600

2,900 2,700

3,100 2,900 3,100

3,900

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Total Stafford/SLS loans Subsidized loans Unsubsidized loans

Type of loan

Amount

 1989–90 1992–93 1995–96
Trends in Subsidized and Unsubsidized Loans

15

Dependent and Independent Students

Both in 1989–90 and in 1992–93, about 18 percent of all undergraduates received subsidized Stafford loans and about 3 percent received unsubsidized SLS loans (figure 1). In 1995–96,

the percentage of all undergraduates receiving subsidized loans had increased to 22 percent, and

those receiving unsubsidized loans had increased to 10 percent. Since unsubsidized loans were

generally not available to dependent students prior to 1995–96, the increase is not unexpected.

However, the rise in unsubsidized loans occurred among both dependent and independent students (figure 3).

Among dependent undergraduates, Stafford loan borrowing rates changed little between

1989–90 and 1992–93 (18 and 20 percent, respectively). The percentage with unsubsidized loans

remained at less than one percent (figure 3). In 1995–96, the proportion of dependent students

with subsidized Stafford loans rose to 25 percent, and those with unsubsidized loans to 9 percent.

Among independent undergraduates, the percentage with subsidized Stafford loans remained

relatively constant between 17 and 19 percent in all three years, but the percentage with

Figure 3—Percentage of all dependent and independent undergraduates receiving subsidized,

Figure 3—unsubsidized, and any Stafford Loans or Supplemental Loans to Students (SLS) in 1989–90, 

Figure 3—1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Dependent

1

18 18

1

20 20

9

25

29

0

5

10

15

20

25

30

35

40

45

50

Total

Stafford/SLS

loans

Subsidized

loans

Unsubsidized

loans

Type of loan

Percent

Independent

5

18 19

5

17 17

11

19 20

0

5

10

15

20

25

30

35

40

45

50

Total

Stafford/SLS

loans

Subsidized

loans

Unsubsidized

loans

Type of loan

Percent

 1989–90 1992–93 1995–96
Trends in Subsidized and Unsubsidized Loans

16

unsubsidized loans about doubled (from 5 to 11 percent) between 1992–93 and 1995–96. By

1995–96, the percentage of dependent and independent students with unsubsidized loans was

about the same.

The total Stafford/SLS percentages and amounts in this report are for those who received

either a subsidized or an unsubsidized Stafford/SLS loan, or both. Most borrowers receive subsidized loans or both. Therefore, the total will be about the same as that for subsidized loans alone.

When students receive only unsubsidized loans, the total will be higher. The difference between

the total and the subsidized percentages is the percentage that received only unsubsidized loans.

For example, in 1995–96, 4 percent of all dependent students received only unsubsidized loans,23

which raised the total borrowing rate to 29 percent.

The distribution of borrowers by the type of loan is shown in figure 4. In 1995–96, about

one-third of the dependent borrowers took out unsubsidized loans, 16 percent with unsubsidized

Figure 4—Percentage distribution of undergraduate Stafford/Supplemental Loans to Students (SLS) 

Figure 4—recipients with subsidized, unsubsidized or a combination of both loans, by dependency in

Figure 4—1989–90, 1992–93 and 1995–96

NOTE: Totals may not sum to 100 due to rounding.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study,

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Total

85 85

59

12 14

28

12

2 1

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

Dependent

97 96

68

15

2 4

1 1

16

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

Independent

75 72

47

25

47

21

4 2 6

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

 Unsubsidized only

 Both

 Subsidized only

 

231995–96 National Postsecondary Student Aid Study Data Analysis System. While figure 3 shows that 9 percent of dependent

undergraduates received unsubsidized loans, 5 percent also received subsidized loans.
Trends in Subsidized and Unsubsidized Loans

17

loans only and 15 percent with both subsidized and unsubsidized loans. In both 1989–90 and

1992–93, about one-fourth of the independent students who received Stafford/SLS loans obtained an unsubsidized loan, usually in combination with a subsidized loan. In 1995–96, however, about one-half of the independent student borrowers took out unsubsidized loans, also

usually in combination with a subsidized loan. In all three years, 6 percent or fewer independent

student Stafford/SLS borrowers took out unsubsidized loans alone.

The increase in the proportion of independent student borrowers taking out both subsidized

and unsubsidized loans in 1995–96 is shown in the growth in the average loan amounts in figure

5. The average subsidized loan amounts did not differ between dependent and independent students in all three years. Independent students, however, could combine them with unsubsidized

loans and had higher limits. Thus, their total amounts were always higher than those for dependent students. In 1995–96, the average independent student total Stafford loan was $1,200 higher

than that for dependent students ($4,600 versus $3,400).

Figure 5—Average subsidized, unsubsidized, and total Stafford Loans or Supplemental Loans to Students

Figure 5—(SLS) received by dependent and independent undergraduates in 1989–90, 1992–93, and 

Figure 5—1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Dependent

2,500

2,200 2,200

2,800

2,600 2,700 2,800

3,100

3,400

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Total

Stafford/SLS

loans

Subsidized loans Unsubsidized

loans

Type of loan

Amount

Independent

2,500 2,400

2,900 3,000

2,700

3,500

3,100 3,200

4,600

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Total

Stafford/SLS

loans

Subsidized loans Unsubsidized

loans

Type of loan

Amount

 1989–90 1992–93 1995–96
Trends in Subsidized and Unsubsidized Loans

18

Despite the higher average loan amounts, the percentage of independent borrowers who received the maximum combined total remained relatively low (figure 6). In all three years, about

one-half of the independent student borrowers received the maximum subsidized loan amount

allowed for their class level (ranging from $2,625 to $5,500). The percentage with the higher

combined total maximum (ranging from $6,625 to $10,500) increased from 3 percent to 13 percent during the period. Among dependent borrowers, the percentage receiving the maximum subsidized amounts increased from about one-third in 1989–90 to one-half in 1992–93, while the

loan limits were the same. In 1995–96, when the loan limits were higher, about one-half still received the maximum subsidized amount and 58 percent received the maximum combined

amounts, which had the same limits ($2,625 to $5,500).24

Figure 6—Percentage of federal Stafford Loans/Supplemental Loans to Students (SLS) undergraduate 

Figure 6—recipients who borrowed the maximum annual subsidized and the combined total (subsidized

Figure 6—and unsubsidized) amounts in 1989–90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Dependent

47 49

34

58

49

34

0

10

20

30

40

50

60

70

1989–90 1992–93 1995–96

Year

Percent

Independent

46

52 49

13 10

3

0

10

20

30

40

50

60

70

1989–90 1992–93 1995–96

Year

Percent

 Maximum subsidized loan Maximum combined total

 

24Only full-time, full-year students are eligible for the maximum amounts.
Trends in Subsidized and Unsubsidized Loans

19

Borrowing by Income

The change in the Stafford/SLS borrowing rates of all dependent undergraduates by income

quartiles in the three years is shown in figure 7. The bars in the figure indicate the percentage

with subsidized loans for each of the three years, and then the total loan percentage (subsidized

and unsubsidized) for 1995–96. When the total percentage is higher than that for subsidized

loans, the difference represents the percentage of students with unsubsidized loans only.

Among dependent students in the lowest income quartile in 1995–96, subsidized borrowing

rates increased from 29 to 34 percent during the first period, and then remained the same. In the

second and third income quartiles, there was no change in subsidized borrowing rates during the

first period, but borrowing increased in the second period for both income groups. In both the

third and highest income quartiles, total borrowing rates were higher than the rates for subsidized

loans in 1995–96. In the third quartile the total borrowing increase was partly due to students

borrowing only unsubsidized loans, while in the highest quartile the increase was entirely due to

Figure 7—Percentage of all dependent undergraduates receiving Stafford Loans or Supplemental Loans

Figure 7—to Students (SLS) by family income quartiles in 1989–90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

6

16

23

29

11

16

24

34

9

24

33 33

20

30

35 34

0

5

10

15

20

25

30

35

40

45

50

Lowest Second Third Highest

Income quartile

Percent

1989–90 subsidized 1992–93 subsidized 1995–96 subsidized 1995–96 subsidized and unsubsidized
Trends in Subsidized and Unsubsidized Loans

20

students borrowing only unsubsidized loans. In other words, before the changes in the loan programs, borrowing rates increased only in the lowest income quartile. After the changes, there was

no further increase in the lowest income quartile, but there were higher borrowing rates of subsidized loans in the second income quartile, of both subsidized and unsubsidized loans in the third

income quartile, and of unsubsidized loans in the highest income quartile.

Among all independent students, the pattern of change between 1992–93 and 1995–96 was

relatively similar (figure 8). There were no increases in borrowing rates in the lowest income

quartile (32 to 33 percent), increases in subsidized loan borrowing rates in the second and third

income quartiles (19 to 23 percent and 10 to 15 percent, respectively), and increases in unsubsidized loan borrowing in the highest income quartile (6 to 9 percent).

Figure 8—Percentage of all independent undergraduates receiving Stafford Loans or Supplemental Loans 

Figure 8—to Students (SLS) by income quartiles in 1989–90, 1992–93, and 1995–96

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

7

12

22

32

6

10

19

33

6

15

23

32

9

16

24

33

0

5

10

15

20

25

30

35

40

45

50

Lowest Second Third Highest

Income quartile

Percent

1989–90 subsidized 1992–93 subsidized 1995–96 subsidized 1995–96 subsidized and unsubsidized
Trends in Subsidized and Unsubsidized Loans

21

The distribution of the types of loans by income levels in 1995–96 is shown in figure 9.

Among dependent students, a small proportion (3 to 4 percent) of the borrowers in the lower income quartiles received only unsubsidized loans, compared with about one-half (52 percent) of

the students in the highest income quartile. The proportion of dependent borrowers with any unsubsidized loans in the two lowest income quartiles was one-fifth or less. In contrast, among independent student borrowers in the lowest and second income quartiles, roughly one-half took

out unsubsidized loans.

Figure 9—Percentage distribution of undergraduate Stafford Loans/Supplemental Loans to Students

Figure 9—(SLS) recipients with subsidized, unsubsidized or a combination of both loans, by dependency

Figure 9—and income quartiles in 1995–96

NOTE: Totals may not sum to 100 due to rounding.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study,

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Dependent

87 81

57

33

21

14

15 10

3

52

21

4

0

10

20

30

40

50

60

70

80

90

100

Lowest Second Third Highest

Income quartiles

Percent

Independent

52 48 44

29

50

50

44

44

27

3 3 6

0

10

20

30

40

50

60

70

80

90

100

Lowest Second Third Highest

Income quartiles

Percent

Unsubsidized

only

Both

Subsidized

only
THIS PAGE INTENTIONALLY LEFT BLANK
23

Borrowing Trends by Types of Institution

The percentage of undergraduates receiving Stafford/SLS loans and the average amounts

borrowed is displayed by the type of institution attended during the three years under consideration in figures 10 and 11. In 1989–90, students at public 2-year institutions were less likely to

borrow (4 percent) than those at the other types of institutions, and they also borrowed the lowest

average amount ($2,100). Those enrolled in private, for-profit institutions were the most likely to

borrow (62 percent).

Figure 10—Percentage of all undergraduates receiving federal Stafford Loans or Supplemental Loans to 

Figure 10—Students (SLS) in 1989–90, 1992–93, and 1995–96 by type of institution attended

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

19

30

62

4 6

23

33

46

35

43

53

6

0

10

20

30

40

50

60

70

Public 2-year Public 4-year Private, not-for-profit 

4-year

Private, for-profit

Type of institution

Percent

1989–90 1992–93 1995–96
Borrowing Trends by Types of Institution

24

Figure 11—Average amount of federal Stafford Loans or Supplemental Loans to Students (SLS) received 

Figure 11—by all undergraduates in 1989–90, 1992–93, and 1995–96 by type of institution attended

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,300 2,700 2,900 $2,600 2,900 3,300

4,000 4,300 4,000

$2,100

3,500 $2,900

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Public 2-year Public 4-year Private, not-for-profit 

4-year

Private, for-profit

Type of institution

Amount 1989–90 1992–93 1995–96

Between 1989–90 and 1992–93, the percentage of students attending public 2-year institutions who took out Stafford/SLS loans did not change significantly, but they borrowed larger

amounts in 1992–93 (from $2,100 to $2,600). In 1995–96, the percentage of all students receiving Stafford loans at public 2-year institutions remained the same as in 1992–93 (6 percent), and

there was no significant increase in the average loan amount ($2,900). The relatively low borrowing rates and loan amounts at public 2-year institutions in all three years reflect the relatively

low levels of tuition and the high percentage of part-time students, including a substantial percentage of less than half-time students (about 30 percent) who were not eligible to participate in

the Stafford/SLS loan programs. Among full-time, full-year students there was an increase in the

percentage receiving Stafford/SLS loans between 1989–90 and 1995–96, from 9 percent to 15

percent, and the average loan amount increased from $2,100 to $3,000.25 However, full-time,

full-year students with Stafford loans represented just 3 percent of all public 2-year undergraduates in 1995–96,26 and the sample size is too small to report measurable changes at any further

level of detail.

 

25See supplementary table 4.4 in appendix A.

261995–96 National Postsecondary Student Aid Study Data Analysis System.
Borrowing Trends by Types of Institution

25

At private, for-profit institutions there was a decline in the percentage of students with Stafford/SLS loans between 1989–90 and 1992–93, dropping from 62 to 46 percent. This reflected

the effects of a number of regulatory changes during this period that restricted participation in the

Stafford/SLS loan programs at institutions with high default rates.27

While the percentage of students borrowing did not increase significantly between 1992–93

and 1995–96 (46 and 53 percent, respectively), students at private, for-profit institutions continued to be more likely to borrow than those attending all other types of institutions. Student borrowing at private, for-profit institutions is examined in detail in a recent study.28 This study

reported that students in private, for-profit institutions paid relatively high tuition, were likely to

attend full-time, and were likely to be low-income independent students. All of these factors are

related to a high demand for student loans.

Among undergraduates attending 4-year institutions, both the percentage borrowing (figure

10) and the average loan amounts (figure 11) were higher at the private, not-for-profit institutions

than at the public institutions in all three years. This reflects the difference in the tuition levels at

these institutions. The average tuition and fees for full-time, full-year undergraduates by the type

of institution attended during the three years under consideration are shown in figure 12. In

1989–90, the average tuition was $2,200 at public 4-year institutions and $8,900 at private, notfor-profit 4-year institutions. Tuition increased in each of the following years at both types of institutions. By 1995–96, the average tuition levels were $3,800 and $12,600, respectively.

Figure 13 displays a comparison of the distribution of all undergraduates and the distribution of the undergraduate Stafford/SLS borrowers by the types of institution attended in the three

academic years under consideration. The largest concentration of undergraduates in all three

years was in the public 2-year institutions, with 42 to 46 percent of total enrollments. The proportions of all undergraduates attending public 4-year and private, not-for-profit 4-year institutions remained about the same in each of the three years (31 to 32 percent and 14 to 15 percent,

respectively). By contrast, the proportion of students enrolled in private, for-profit institutions

declined from 9 percent to 6 percent of all undergraduates during this period.

Although they represented just 9 percent of all undergraduates in 1989–90, students at private, for-profit institutions made up 29 percent of all undergraduate Stafford/SLS borrowers in

that year. By 1995–96, however, the proportion of borrowers in the Stafford loan program enrolled in private, for-profit institutions had dropped to 12 percent.

 

27R. Phipps, K. Harrison, J. Meritosis, Students in Private For-Profit Institutions (U.S. Department of Education, National Center for Education Statistics (NCES)), forthcoming.

28Ibid.
Borrowing Trends by Types of Institution

26

Figure 12—Average tuition and fees for full-time, full-year undergraduates by type of institution attended

Figure 12—in 1989–90, 1992–93, and 1995–96

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,200

8,900

5,700

$1,200

3,000

11,100

3,800

12,600

6,900

$800

5,600

$1,400

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Public 2-year Public 4-year* Private, not-for-profit 

4-year

Private, for-profit

Type of institution

Tuition and fees

1989–90 1992–93 1995–96

In 1989–90, students attending public 4-year institutions represented one-third of all undergraduates receiving Stafford/SLS loans. Six years later, they made up nearly half (45 percent) of

all Stafford loan recipients. Unlike in public 4-year institutions, the proportion of Stafford loan

borrowers in private, not-for-profit 4-year institutions did not change measurably over the two

time periods (23 to 26 percent).

In summary, reflecting higher tuition, students in private not-for-profit 4-year institutions

were more likely to borrow and borrow larger amounts of Stafford loans than their counterparts

at public 4-year institutions. In both 4-year sectors, however, there was an increase in borrowing

rates and Stafford loan amounts between 1992–93 and 1995–96. Students in private-for-profit

institutions, who made up a small proportion of all undergraduates, were more likely to borrow

than students in other types of institutions. Due in part to regulatory changes, however, the proportion of borrowers in private, for-profit institutions declined between 1989–90 and 1992–93

and then remained relatively constant in the second period.29

 

29While it appears that there was a drop in proportion of borrowers (from 19 to 12 percent), there is not enough statistical evidence to draw this conclusion.
Borrowing Trends by Types of Institution

27

Figure 13—Distribution of all undergraduates and of all undergraduates receiving Stafford Loans or

Figure 13—Supplemental Loans to Students (SLS) by type of institution attended in 1989–90, 1992–93,

Figure 13—and 1995–96

NOTE: Totals may not sum to 100 due to rounding.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

All undergraduates

32 31 31

14 14

42 44 46

15

3 3 3

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

9 6 8

Stafford or SLS borrowers

33 39 45

26

26

13

14

15

29

19

23

12

3 2 2

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

Other

Private, for-profit

Public 2-year

Private, not-forprofit 4-year

Public 4-year
THIS PAGE INTENTIONALLY LEFT BLANK
29

Tuition and Borrowing at 4-Year Institutions

By 1995–96, 70 percent of all undergraduates receiving Stafford loans were attending 4-

year colleges and universities, and over 70 percent of these borrowers were enrolled full-time for

a full academic year (71 percent at the public 4-year, and 78 percent at private, not-for-profit 4-

year institutions). This section of the report will focus on borrowing and tuition levels among the

full-time, full-year students in these two sectors.

Public 4-Year Institutions

At the public 4-year institutions, the average tuition for full-time, full-year undergraduates

rose from $2,200 to $3,800 between 1989–90 and 1995–96, an increase of $1,600 (figure 14).30

Figure 14—Average amount of Stafford Loans and Supplemental Loans to Students (SLS), grants received, 

Figure 14—and average tuition paid by full-time, full-year undergraduates in 1989–90, 1992–93, and 

Figure 14—1995–96: Public 4-year institutions

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,300 2,200

$3,000 2,600 3,000 3,000

3,800

$2,400

$4,200

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Stafford and SLS loans All grants Tuition*

Amount 1989–90 1992–93 1995–96

 

30These tuition amounts include out-of-state students who are usually charged higher tuition.
Tuition and Borrowing at 4-Year Institutions

30

At the same time, the average grant increased by just $700 (from $2,300 to $3,000) while the average Stafford/SLS loan increased by $1,800 (from $2,400 to $4,200). In other words, grant

amounts increased less than tuition, while loans increased about the same amount as tuition.

The percentage of full-time, full-year undergraduates in public 4-year institutions receiving

Stafford/SLS loans nearly doubled (from 22 to 43 percent) in the six-year period between 1989–

90 and 1995–96 (figure 15). For dependent full-time, full-year students, the percentage taking out

Stafford/SLS loans increased from 18 to 24 percent in the first period from 1989–90 to 1992–93,

and then jumped to 39 percent in 1995–96. The increase in the percentage borrowing was higher

in the second period, after the new loan program went into effect, than in the first. Likewise, the

average loan amount received by full-time, full-year dependent undergraduates increased by a

larger amount during the second period ($1,000) than during the first ($600) (figure 16).

Figure 15—Percentage of all undergraduates and of full-time, full-year undergraduates receiving federal

Figure 15—Stafford Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96 by 

Figure 15—dependency: Public 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

All undergraduates

22

17 19

26

22 23

33 35 35

0

10

20

30

40

50

60

70

Total Dependent Independent

Stafford or SLS loans

Percent

Full-time, full-year

36

18

22

47

24

29

60

39

43

0

10

20

30

40

50

60

70

Total Dependent Independent

Stafford or SLS loans

Percent

 1989–90 1992–93 1995–96
Tuition and Borrowing at 4-Year Institutions

31

Figure 16—Average total Stafford Loans/Supplemental Loans to Students (SLS) received by full-time, fullFigure 16—year undergraduates in 1989–90, 1992–93, and 1995–96: Public 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,800

2,100

2,400

3,600

2,700

3,000

5,500

3,700

4,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Total Dependent Independent

Type of student

Amount

 1989–90 1992–93 1995–96

Among independent full-time, full-year undergraduates in public 4-year institutions, the increases in the borrowing rates were similar in both periods (from 36 percent to 47 percent in the

first period and then to 60 percent in the second; figure 15). However, like their dependent

counterparts, the average loan amount increased more in the second period (by $1,900) than in

the first ($800; figure 16).

This pattern of borrowing more during the second period compared to the first period does

not parallel the pattern of the average tuition increases for public 4-year institutions over the

same two time periods. While there were marked increases in tuition charged for public 4-year

institutions during the two time periods—from $2,200 to $3,000 to $3,800 (as was shown in figure 12)—the size of the increases in each period were similar, about $800.
Tuition and Borrowing at 4-Year Institutions

32

The change in the distribution of students by tuition levels between 1989–90 and 1995–96

in public 4-year institutions is shown in figure 17. In 1989–90, a majority (57 percent) of the fulltime, full-year undergraduates were charged less than $2,000 in annual tuition; three years later it

had dropped to about one-third (34 percent); and in 1995–96 about one-fifth (19 percent) were

charged less than $2,000. Correspondingly, in 1995–96, about one-fifth (18 percent) were

charged $5,000 or more, compared to 5 percent who were charged $5,000 or more six years earlier.

Figure 17—Distribution of all undergraduates and full-time, full-year undergraduates by tuition and fees

Figure 17—charged in 1989–90, 1992–93, and 1995–96: Public 4-year institutions*

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

NOTE: Totals may not sum to 100 due to rounding.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

8

All undergraduates

70

55

44

19

23

23

14

4

3 11

3

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

5

8

9 9

Full-time, full-year

57

34

19

26

34

29

21

14

12 18

14

4

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

$5,000 or more

$4,000–4,999

$3,000–3,999

$2,000–2,999

Less than

$2,000

5

8 7

Although increasing tuition levels create demand for student loans,31 the Stafford/SLS borrowing rates were not directly related to tuition increases over time between 1989–90 and 1995–

96 (figure 18). For example, in 1989–90, among students in three successively higher levels of

tuition ($2,000–2,999, $3,000–3,999, and $4,000–4,999), the same proportion in all three groups

took out Stafford/SLS loans (26 to 28 percent). Six years later, while a greater percentage had

 

31As evidenced by students who are more likely to borrow and to borrow higher amounts among those who attend higher tuition

schools, such as private-not-for-profit 4-year institutions, versus those who attend public 4-year institutions.
Tuition and Borrowing at 4-Year Institutions

33

Figure 18—Percentage of full-time, full-year undergraduates receiving Stafford Loans or Supplemental 

Figure 18—Loans to Students (SLS) by tuition and fees charged in 1989–90, 1992–93, and 1995–96: Public 

Figure 18—4-year institutions

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

22

28 26 26

19

25

34 33 31

26

43

49 47

43

37

0

10

20

30

40

50

60

70

Less than $2,000 $2,000–2,999 $3,000–3,999 $4,000–4,999 $5,000 or more

Tuition and fees*

Percent

1989–90 1992–93 1995–96

borrowed in each of the three tuition levels, the proportions across the three levels borrowed

were not measurably different (43 to 49 percent). In fact, there was no difference in the amount

of change in the percentage of borrowers by tuition levels (increases of 17 to 21 percentage

points), between 1989–90 and 1995–96. In other words, regardless of tuition level, full-time fullyear undergraduates at public 4-year institutions were more likely to borrow and to borrow

greater amounts in 1995–96 than in 1989–90.
Tuition and Borrowing at 4-Year Institutions

34

The effect of the increases in annual borrowing was a substantial increase in the cumulative

Stafford/SLS loan amounts among the students in the higher class levels, especially after 1992–

93 (figure 19). The cumulative loan amounts shown are the total that the students ever borrowed

as undergraduates through their respective class levels in the given year. (Since some of this may

already have been repaid, these averages may be somewhat higher than the average debt owed at

that time). The cumulative loan amounts of college seniors (fourth- and fifth-year undergraduates) are of particular interest, because these students are completing their undergraduate education. Between 1989–90 and 1992–93, the average cumulative Stafford/SLS loan amount of

seniors at public 4-year institutions grew from $5,800 to $7,000, an increase of $1,200. Three

years later, after the higher loan limits were in effect, the average cumulative amount borrowed

had risen to $11,000, an increase of $4,000. In 1995–96, about one-half (51 percent) of all fourthand fifth-year students at 4-year public institutions had taken out a Stafford/SLS loan at some

time during their undergraduate years.

Figure 19—Cumulative total Stafford/Supplemental Loans to Students (SLS) borrowed by class level in 

Figure 19—1989–90, 1992–93, and 1995–96: Public 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,500

3,500

4,400

5,800

2,900

3,900

5,200

7,000

3,400

5,500

8,100

11,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

First year Second year Third year Fourth/fifth

Class level

Cumulative amount

1989–90 1992–93 1995–96
Tuition and Borrowing at 4-Year Institutions

35

Private, Not-for-Profit 4-Year Institutions

At private, not-for-profit 4-year institutions, between 1989–90 and 1995–96 the average

tuition for full-time, full-year undergraduates increased by $3,700, from $8,900 to $12,600 (figure 20). The average grant increased by $2,000 (from $4,600 to $6,600) and the average Stafford/SLS loan increased by $1,400 (from $2,800 to $4,200). Both grants and loans, therefore,

increased less than tuition.

Figure 20—Average amount of Stafford Loans and Supplemental Loans to Students (SLS), grants received,

Figure 20—and average tuition paid by full-time, full-year undergraduates in 1989–90, 1992–93, and 

Figure 20—1995–96: Private, not-for-profit 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

4,600

8,900

$3,300

5,900

11,100

6,600

12,600

$2,800

$4,200

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Stafford and SLS loans All grants Tuition

Amount 1989–90 1992–93 1995–96

The percentage of full-time, full-year dependent students taking out Stafford/SLS loans remained the same in the three years between 1989–90 to 1992–93 (37 and 40 percent, respectively), and then increased to 54 percent in 1995–96 (figure 21). The average loan amount

received by the same group increased in both periods (figure 22). However, the increase was

larger during the second period ($800, from $3,000 to $3,800) than during the first period ($400,

from $2,600 to $3,000).

Among independent full-time, full-year undergraduates, there was also an increase in the

borrowing rate during the second period (from 53 percent to 61 percent), but not during the first
Tuition and Borrowing at 4-Year Institutions

36

Figure 21—Percentage of all undergraduates and of full-time, full-year undergraduates receiving federal

Figure 21—Stafford Loans or Supplemental Loans to Students (SLS) in 1989–90, 1992–93, and 1995–96 by 

Figure 21—dependency: Private, not-for-profit 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

All undergraduates

26

33 31

27

38

33 32

50

43

0

10

20

30

40

50

60

70

Total Dependent Independent

Stafford or SLS loans

Percent

Full-time, full-year

49

37 39

53

40 42

61

55 54

0

10

20

30

40

50

60

70

Total Dependent Independent

Stafford or SLS loans

Percent

 1989–90 1992–93 1995–96

Figure 22—Average total Stafford Loans/Supplemental Loans to Students (SLS) received by full-time,

Figure 22—full-year undergraduates in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year 

Figure 22—institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

3,400

2,600 2,800

4,400

3,000 3,300

6,300

3,800

4,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Total Dependent Independent

Type of student

Amount 1989–90 1992–93 1995–96
Tuition and Borrowing at 4-Year Institutions

37

period. Similarly, the average loan amount increased more in the second period (by $1,900), than

in the first period ($1,000).

If one looks at the average change in tuition levels, tuition increases in private not-for-profit

institutions were higher in the first period than in the second ($2,200 compared with $1,500).

Borrowing, on the other hand, increased more in the second period, after the changes in the loan

programs went into effect, than in the first.

The change in the distribution of students by tuition levels between 1989–90 and 1995–96

is shown in figure 23. In 1989–90, nearly one-half (45 percent) of the full-time, full-year undergraduates attending private, not-for-profit 4-year institutions were charged less than $8,000 in

annual tuition (36 percent were charged $4,000–$7,999 and 9 percent were charged less than

$4,000); six years later it had dropped to about one-fifth (10 percent and 9 percent, respectively).

Correspondingly, in 1995–96, 25 percent were charged $16,000 or more, compared with 4 percent six years earlier.

Figure 23—Distribution of all undergraduates and full-time, full-year undergraduates by tuition and fees

Figure 23—charged in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions

NOTE: Totals may not sum to 100 due to rounding.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

All undergraduates

33 34 30

29

20

15

23

19

18

12

16

21

12 2

16

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent Full-time, full-year

36

19

34

28

24

17

26

32

19

9 9 9

10

25

4

0

10

20

30

40

50

60

70

80

90

100

1989–90 1992–93 1995–96

Year

Percent

$16,000 or more

$12,000–15,999

$8,000–11,999

$4,000–7,999

Less than $4,000
Tuition and Borrowing at 4-Year Institutions

38

As in the case of the public 4-year institutions, the borrowing rates were not directly related

to tuition levels (figure 24). In 1995–96, for example, borrowing rates at all tuition levels between $4,000 and $15,999, were the same (61 to 64 percent). Moreover, those charged the highest tuition ($16,000 or more) were less likely to borrow than those charged between $4,000 and

$15,000. Except at the lowest and the highest tuition levels (less than $4,000 and $16,000 or

more, respectively), the increase in borrowing was the same over the six-year time period between 1989–90 and 1995–96 (from 21 to 26 percentage points).

Figure 24—Percentage of full-time, full-year undergraduates receiving Stafford Loans or Supplemental

Figure 24—Loans to Students (SLS) by tuition and fees charged in 1989–90, 1992–93, and 1995–96:

Figure 24—Private, not-for-profit 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

29

43

39

35 36

30

46 48

40 38

28

64 62 61

47

0

10

20

30

40

50

60

70

Less than $4,000 $4,000–7,999 $8,000–11,999 $12,000–15,999 $16,000 or more

Tuition and fees

Percent

1989–90 1992–93 1995–96

The cumulative Stafford/SLS loan amounts and the percentage of undergraduates who ever

received a Stafford/SLS loan by class level in each of the three years under consideration are

shown in figure 25. The cumulative amounts borrowed by fourth- and fifth-year undergraduates

at private, not-for-profit colleges and universities grew from $7,600 in 1989–90 to $9,000 in
Tuition and Borrowing at 4-Year Institutions

39

1992–93, and then increased by $4,100 to $13,100 in 1995–96. The cumulative average Stafford/SLS loan amounts of seniors at private, not-for-profit institutions were therefore about

$2,000 higher than those of their counterparts at public 4-year institutions in each of the three

years (see figure 19).

Figure 25—Cumulative total Stafford/Supplemental Loans to Students (SLS) borrowed by class level in

Figure 25—1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

2,700

4,300

5,800

7,600

3,000

4,700

6,300

9,000

3,700

6,600

9,800

13,100

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

First year Second year Third year Fourth/fifth

Class level

Cumulative amount 1989–90 1992–93 1995–96
THIS PAGE INTENTIONALLY LEFT BLANK
41

Summary and Conclusions

The changes in the federal Stafford loan programs and the federal need analysis methodology that went into effect in 1993 allowed for increased borrowing by dependent undergraduates

from middle- and upper-income families, but at a higher price: through unsubsidized loans. The

same amounts of low-interest federal loans became available to dependent students whose family

incomes were above the median as were available to those with family incomes below the median, but without the in-school interest subsidy afforded the latter. In addition, dependent students benefited from changes in need analysis that expanded the proportion of students who

could qualify for subsidized loans.

In 1989–90 about one-fifth (19 percent) of all undergraduates received Stafford/SLS loans

and this percentage had not changed in 1992–93. However, during the same time period, students

borrowed more, and the average loan amount increased from $2,600 to $3,100. Three years later,

when the new loan program rules were in effect, both the percentage of students borrowing (25

percent) and the average loan amounts ($3,900) had increased.

The change in borrowing rates for all undergraduates between 1992–93 and 1995–96 was

primarily due to increased borrowing by dependent students. Between 1992–93 and 1995–96,

there was an increase in the percentage of dependent undergraduates receiving subsidized loans

in the two middle income quartiles (incomes ranging from $25,000 to $71,000), and an increase

in the percentage receiving unsubsidized loans in the upper middle and highest income quartiles

(incomes of $47,000 and above).

For independent students, the total percentage borrowing did not change; however, the percentage borrowing unsubsidized loans (mostly in combination with subsidized loans) increased

substantially between 1992–93 and 1995–96. Because of changes in eligibility for loans, the increased borrowing by dependent students might be expected. However, it is less clear why there

was such an increase in unsubsidized loan borrowing among independent undergraduates. The

increase may be the result of the organizational change in the distribution of loans which provided both subsidized and unsubsidized loans through a single Stafford loan program. The terms

and conditions for independent students in the unsubsidized Stafford loan program were essentially the same as those for the SLS loan program that it replaced in 1993–94. However, the process for obtaining an unsubsidized Stafford loan is much easier because it does not involve a

separate loan program. In order to obtain a SLS loan, the student had to know that such a
Summary and Conclusions

42

program was available, and to file a separate application. Unsubsidized Stafford loans, on the

other hand, are processed as part of a single loan application. The student applies for a Stafford

loan, and the institution determines (based on need analysis), the subsidized and the unsubsidized

amounts for which the student qualifies. The student then has the choice of borrowing all or part

of the subsidized amount and all or part of the unsubsidized amount for which the student qualifies. Unlike the SLS loans, which required a separate effort, Stafford unsubsidized loan eligibility

is automatically provided as part of the loan application process.

In any particular year, borrowing rates reflect the differences in the average tuition levels at

the public 2-year, public 4-year institutions, and private, not-for-profit 4-year institutions. Students were least likely to borrow at relatively low-tuition community colleges, more likely to borrow at public 4-year institutions where average tuition is about three times higher, and even more

likely to borrow at private, not-for-profit 4-year institutions where average tuition is about three

times higher than at public 4-year institutions.

Nevertheless, despite relatively large increases in tuition that occurred over the time period

studied in this analysis, the relationship between tuition levels and borrowing within institution

types was not as direct as the general patterns suggest. Within both public 4-year institutions and

private, not-for-profit 4-year institutions, the borrowing rates of full-time, full-year undergraduates did not vary directly with tuition levels. In fact, with some exceptions, borrowing increased

by about the same rates and by about the same amounts across all tuition levels.
43

Appendix A—Supplemental Tables
Table 1.1—Percentage of all undergraduates who received any federal Stafford Loans or Supplemental

Table 1.1—Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, and 1995–96

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 18.5 $2,579 18.5 $3,087 24.7 $3,922 

Type of institution

 Public 4-year 18.7 2,312 23.4 2,927 34.5 4,006 

 Private, not-for-profit 4-year 30.5 2,746 33.4 3,300 43.3 4,254 

 Public 2-year 4.4 2,086 5.8 2,587 5.9 2,869 

 Private, for profit 62.3 2,932 45.8 3,513 53.4 4,045 

Undergraduate class level 

 1st year/freshman 16.7 2,577 14.4 2,834 19.1 2,935 

 2nd year/sophomore 16.8 2,245 17.0 2,654 21.9 3,501 

 3rd year/junior 23.2 2,645 27.7 3,287 41.1 4,805 

 4th or 5th year senior 23.0 2,843 27.6 3,428 38.7 5,035 

Dependency status

 Dependent 18.3 2,246 20.1 2,730 29.4 3,445 

 Independent 18.7 2,880 17.1 3,473 20.1 4,598 

Dependent student income

 Lowest quartile 28.8 2,201 34.1 2,675 33.9 3,303 

 Second quartile 22.9 2,248 23.8 2,728 34.5 3,501 

 Third quartile 16.0 2,257 16.0 2,755 29.9 3,441 

 Highest quartile 6.4 2,397 11.1 2,869 19.6 3,589 

Independent student income

 Lowest quartile 32.4 2,811 33.5 3,255 33.2 4,501 

 Second quartile 23.0 2,904 19.1 3,599 23.8 4,622 

 Third quartile 13.1 2,949 10.8 3,636 15.7 4,633 

 Highest quartile 7.2 2,971 6.5 3,898 8.6 4,810 

Attendance pattern

 Full-time/full-year 25.3 2,573 30.0 3,199 42.2 4,117 

 Full-time/part-year 21.6 2,464 27.1 2,722 23.7 3,217 

 Part-time/full-year 8.3 2,651 11.2 3,158 17.3 3,965 

 Part-time/part-year 4.4 2,344 7.3 2,975 5.0 3,038 

Tuition and fees*

 Less than $1,000 4.8 2,189 5.7 2,659 3.9 2,698 

 $1,000–1,999 19.6 2,249 18.9 2,770 23.9 3,320 

 $2,000–3,999 32.9 2,499 30.1 2,950 38.3 4,035 

 $4,000–7,999 48.4 2,919 41.2 3,367 51.0 4,187 

 $8,000 or more 41.6 2,960 42.8 3,542 55.4 4,471 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

44
Table 1.2—Percentage of all undergraduates who received federal subsidized Stafford loans, and the

Table 1.2—average amount borrowed in 1989–90, 1992–93, and 1995–96

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 18.1 $2,314 18.3 $2,668 21.7 $3,114 

Type of institution

 Public 4-year 18.4 2,212 23.1 2,675 29.7 3,331 

 Private, not-for-profit 4-year 29.9 2,624 33.1 2,920 38.9 3,565 

 Public 2-year 4.3 1,943 5.7 2,217 4.9 2,219 

 Private, for profit 60.8 2,331 45.2 2,657 49.7 2,423 

Undergraduate class level 

 1st year/freshman 16.3 2,186 14.2 2,345 16.6 2,199 

 2nd year/sophomore 16.6 2,070 16.8 2,297 19.2 2,790 

 3rd year/junior 22.9 2,507 27.4 2,966 35.9 3,914 

 4th or 5th year senior 22.5 2,710 27.2 3,040 34.5 4,132 

Dependency status

 Dependent 18.2 2,209 20.0 2,628 24.6 3,073 

 Independent 18.1 2,411 16.7 2,711 18.8 3,165 

Dependent student income

 Lowest quartile 28.8 2,158 34.0 2,562 32.7 3,080 

 Second quartile 22.8 2,214 23.7 2,620 33.2 3,196 

 Third quartile 15.9 2,225 16.0 2,687 23.5 2,952 

 Highest quartile 6.3 2,363 10.9 2,778 9.4 2,936 

Independent student income

 Lowest quartile 31.9 2,399 33.2 2,679 32.1 3,261 

 Second quartile 22.4 2,399 18.7 2,688 23.2 3,126 

 Third quartile 12.4 2,442 10.3 2,760 14.8 3,060 

 Highest quartile 6.7 2,452 6.3 2,855 6.3 3,103 

Attendance pattern

 Full-time/full-year 25.0 2,405 29.7 2,837 36.8 3,373 

 Full-time/part-year 21.0 2,090 26.7 2,278 21.5 2,244 

 Part-time/full-year 8.0 2,358 11.0 2,606 15.4 3,063 

 Part-time/part-year 4.3 2,045 7.2 2,480 4.4 2,246 

Tuition and fees*

 Less than $1,000 4.7 2,034 5.6 2,343 3.3 2,125 

 $1,000–1,999 19.1 2,119 18.5 2,439 20.4 2,722 

 $2,000–3,999 32.4 2,271 29.7 2,602 33.6 3,249 

 $4,000–7,999 47.4 2,470 40.8 2,758 45.1 3,116 

 $8,000 or more 41.3 2,639 42.5 3,095 49.5 3,612 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

45
Table 1.3—Percentage of all undergraduates who received federal unsubsidized Stafford Loans or 

Table 1.3—Supplemental Loans to Students (SLS) and the average amount borrowed in 1989–90, 1992–93, 

Table 1.3—and 1995–96

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 2.7 $2,485 2.9 $2,941 10.0 $2,925 

Type of institution

 Public 4-year 1.1 2,629 2.4 2,760 13.5 2,913 

 Private, not-for-profit 4-year 2.1 3,080 4.2 3,290 13.9 3,280 

 Public 2-year 0.4 — 0.8 3,123 2.5 2,421 

 Private, for profit 19.0 2,393 14.4 2,836 32.4 2,953 

Undergraduate class level 

 1st year/freshman 3.5 2,356 2.6 2,894 7.6 2,575 

 2nd year/sophomore 1.6 2,661 2.2 2,891 8.6 2,689 

 3rd year/junior 1.8 2,686 3.5 2,894 16.8 3,390 

 4th or 5th year senior 2.0 2,758 4.0 2,979 16.0 3,245 

Dependency status

 Dependent 0.5 2,503 0.8 2,843 9.3 2,767 

 Independent 4.7 2,481 4.8 2,956 10.7 3,058 

Dependent student income

 Lowest quartile 0.8 2,223 1.5 2,727 4.4 2,511 

 Second quartile 0.5 2,423 0.9 2,999 6.6 2,219 

 Third quartile 0.4 2,826 0.4 3,050 12.7 2,623 

 Highest quartile 0.2 — 0.5 2,940 13.1 3,283 

Independent student income

 Lowest quartile 7.3 2,239 7.6 2,678 15.8 2,826 

 Second quartile 6.2 2,472 6.0 3,118 12.5 3,015 

 Third quartile 3.5 2,678 3.5 3,092 8.8 3,133 

 Highest quartile 2.0 2,998 2.3 3,203 6.2 3,581 

Attendance pattern

 Full-time/full-year 2.4 2,667 3.8 3,044 16.0 3,103 

 Full-time/part-year 4.3 2,371 5.1 2,581 11.5 2,440 

 Part-time/full-year 1.4 2,638 2.2 3,127 7.4 2,909 

 Part-time/part-year 0.8 2,154 1.4 2,847 2.4 2,220 

Tuition and fees*

 Less than $1,000 0.4 2,503 0.7 2,806 1.5 2,334 

 $1,000–1,999 1.8 2,510 2.5 2,830 9.6 2,501 

 $2,000–3,999 4.2 2,369 4.2 2,754 15.8 2,863 

 $4,000–7,999 11.5 2,407 9.0 2,905 24.4 2,996 

 $8,000 or more 5.2 3,054 5.9 3,435 19.8 3,477 

—Too few cases for a reliable estimate.

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

46
Table 1.4—Percentage of full-time, full-year undergraduates who received any federal Stafford Loans or

Table 1.4—Supplemental Loans to Students (SLS) and the average amount borrowed in 1989–90, 1992–93,

Table 1.4—and 1995–96: All institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 25.3 $2,573 30.0 $3,199 42.2 $4,117 

Type of institution

 Public 4-year 21.9 2,368 28.9 3,014 43.4 4,166 

 Private, not-for-profit 4-year 38.9 2,759 42.2 3,317 55.1 4,235 

 Public 2-year 9.3 2,117 10.4 2,421 14.7 3,047 

 Private, for profit 69.1 3,114 52.0 3,944 65.1 4,677 

Undergraduate class level 

 1st year/freshman 21.2 2,477 26.0 2,908 39.7 2,960 

 2nd year/sophomore 24.8 2,255 26.3 2,695 36.4 3,561 

 3rd year/junior 29.0 2,647 34.4 3,353 51.0 4,946 

 4th or 5th year senior 30.8 2,950 36.1 3,616 48.3 5,312 

Dependency status

 Dependent 21.4 2,316 25.7 2,816 39.8 3,615 

 Independent 36.5 2,993 40.6 3,805 49.1 5,266 

Dependent student income

 Lowest quartile 36.6 2,264 45.0 2,739 46.3 3,493 

 Second quartile 28.7 2,311 36.5 2,829 48.1 3,682 

 Third quartile 19.4 2,322 21.6 2,837 40.8 3,611 

 Highest quartile 7.6 2,480 13.0 2,931 26.2 3,693 

Independent student income

 Lowest quartile 39.2 2,922 46.2 3,504 54.6 5,084 

 Second quartile 39.3 2,992 38.6 4,071 52.1 5,403 

 Third quartile 34.0 3,108 35.5 4,085 45.3 5,307 

 Highest quartile 26.2 3,098 30.7 4,340 34.2 5,564 

Tuition and fees*

 Less than $1,000 9.8 2,427 9.3 2,703 7.8 2,577 

 $1,000–1,999 18.5 2,243 21.2 2,866 27.0 3,535 

 $2,000–3,999 28.0 2,377 30.4 2,988 40.2 4,188 

 $4,000–7,999 44.0 2,853 41.4 3,402 53.0 4,219 

 $8,000 or more 39.6 2,900 42.8 3,489 56.4 4,385 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

47
Table 1.5—Percentage of full-time, full-year undergraduates who received federal subsidized Stafford loans,

Table 1.6—and the average amount borrowed in 1989–90, 1992–93, and 1995–96: All institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 25.0 $2,405 29.7 $2,837 36.8 $3,373 

Type of institution

 Public 4-year 21.7 2,283 28.6 2,771 36.9 3,502 

 Private, not-for-profit 4-year 38.6 2,671 42.0 2,983 49.6 3,662 

 Public 2-year 8.8 1,978 10.1 2,107 12.1 2,312 

 Private, for profit 67.4 2,474 51.5 3,096 59.5 2,899 

Undergraduate class level 

 1st year/freshman 20.8 2,205 25.7 2,530 33.9 2,356 

 2nd year/sophomore 24.4 2,139 26.1 2,407 31.6 2,941 

 3rd year/junior 28.8 2,542 34.0 3,036 44.6 4,061 

 4th or 5th year senior 30.3 2,841 35.7 3,232 42.8 4,419 

Dependency status

 Dependent 21.2 2,291 25.6 2,741 33.4 3,251 

 Independent 35.4 2,596 39.8 2,990 46.3 3,621 

Dependent student income

 Lowest quartile 36.5 2,236 45.0 2,664 44.8 3,272 

 Second quartile 28.5 2,287 36.4 2,753 46.7 3,390 

 Third quartile 19.3 2,294 21.6 2,761 32.3 3,155 

 Highest quartile 7.5 2,460 12.9 2,869 13.4 2,989 

Independent student income

 Lowest quartile 38.7 2,568 45.7 2,901 52.9 3,672 

 Second quartile 38.0 2,581 37.7 3,028 51.1 3,613 

 Third quartile 32.8 2,646 34.1 3,121 42.6 3,556 

 Highest quartile 24.4 2,687 29.7 3,205 24.7 3,514 

Tuition and fees*

 Less than $1,000 9.6 2,257 9.0 2,468 6.8 2,131 

 $1,000–1,999 18.0 2,151 20.7 2,561 22.5 2,923 

 $2,000–3,999 27.8 2,285 30.1 2,707 35.0 3,456 

 $4,000–7,999 43.3 2,575 41.2 2,901 45.7 3,297 

 $8,000 or more 39.3 2,688 42.6 3,110 50.1 3,666 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

48
Table 1.6—Percentage of full-time, full-year undergraduates who received federal unsubsidized Stafford 

Table 1.6—Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 

Table 1.6—1992–93, and 1995–96: All institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 2.4 $2,667 3.8 $3,044 16.0 $3,103 

Type of institution

 Public 4-year 1.2 2,619 2.8 2,848 17.1 3,029 

 Private, not-for-profit 4-year 1.8 3,159 4.3 3,438 15.4 3,337 

 Public 2-year 0.9 — 1.2 — 6.4 2,637 

 Private, for profit 19.8 2,684 15.5 2,936 38.7 3,413 

Undergraduate class level 

 1st year/freshman 2.9 2,646 3.5 3,060 14.0 2,687 

 2nd year/sophomore 1.8 2,661 2.8 2,889 13.0 2,828 

 3rd year/junior 1.9 2,470 4.0 3,001 20.3 3,507 

 4th or 5th year senior 2.1 2,823 4.8 3,093 19.9 3,387 

Dependency status

 Dependent 0.4 2,707 0.8 2,792 12.1 2,904 

 Independent 7.8 2,661 11.5 3,086 27.1 3,355 

Dependent student income

 Lowest quartile 0.6 2,656 1.4 2,546 5.5 2,718 

 Second quartile 0.6 — 1.1 2,788 8.2 2,277 

 Third quartile 0.4 — 0.5 3,075 16.6 2,741 

 Highest quartile 0.1 — 0.4 — 16.8 3,377 

Independent student income

 Lowest quartile 7.1 2,415 10.6 2,796 27.3 3,043 

 Second quartile 9.9 2,522 13.0 3,285 28.7 3,377 

 Third quartile 7.0 3,010 12.0 3,233 25.3 3,508 

 Highest quartile 6.7 3,340 11.2 3,394 26.1 3,972 

Tuition and fees*

 Less than $1,000 0.9 — 1.0 — 2.5 —

 $1,000–1,999 1.4 2,441 2.5 3,093 10.4 2,845 

 $2,000–3,999 1.5 2,655 3.3 2,819 15.9 2,991 

 $4,000–7,999 5.9 2,759 7.3 2,926 23.6 3,085 

 $8,000 or more 3.4 3,098 5.0 3,405 18.4 3,460 

—Too few cases for a reliable estimate.

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

49
Table 1.7—Percentage of undergraduates with subsidized Stafford loans and percentage of undergraduates

Table 1.7—with any Stafford Loans or Supplemental Loans to Students (SLS) who borrowed the 

Table 1.7—maximum annual amounts in 1989–90, 1992–93, and 1995–96: All institutions

Percentage who borrowed Percentage who borrowed

maximum subsidized amount maximum total amount

1989–90 1992–93 1995–96 1989–90 1992–93 1995–96

 Total 42.0 50.6 46.9 17.8 30.2 38.9 

Type of institution

 Public 4-year 23.7 40.9 41.1 12.1 24.8 36.6 

 Private, not-for-profit 4-year 42.5 58.8 60.6 29.9 45.2 56.6 

 Public 2-year 34.6 41.6 41.4 7.2 16.5 22.5 

 Private, for profit 64.9 65.8 45.3 18.6 31.6 31.3 

Undergraduate class level 

 1st year/freshman 53.7 59.7 58.8 20.3 35.3 48.4 

 2nd year/sophomore 42.8 57.6 46.1 22.8 36.4 39.8 

 3rd year/junior 21.7 35.9 33.9 10.7 22.3 32.0 

 4th or 5th year senior 27.9 41.3 43.7 11.9 22.8 32.7 

Dependency status

 Dependent 34.1 49.3 47.3 33.9 49.1 57.5 

 Independent 49.3 51.9 46.3 3.4 9.8 12.6 

Dependent student income

 Lowest quartile 33.3 47.2 46.5 33.2 47.1 49.6 

 Second quartile 35.6 48.6 51.3 35.3 48.5 56.8 

 Third quartile 33.7 52.0 43.9 33.5 51.9 59.0 

 Highest quartile 33.1 53.7 45.2 32.6 53.1 69.2 

Independent student income

 Lowest quartile 48.2 49.1 49.3 2.7 6.7 10.3 

 Second quartile 49.7 52.3 47.6 3.5 12.3 14.7 

 Third quartile 50.6 57.1 41.8 4.4 11.9 13.1 

 Highest quartile 50.1 56.3 38.2 4.5 14.4 14.4 

Attendance pattern

 Full-time/full-year 38.4 54.7 54.0 21.9 36.5 48.9 

 Full-time/part-year 43.3 42.3 29.4 14.5 19.6 20.3 

 Part-time/full-year 42.1 47.3 40.8 10.6 21.6 22.2 

 Part-time/part-year 40.0 46.3 23.9 11.1 26.7 11.3 

Tuition and fees*

 Less than $1,000 28.6 40.5 29.5 7.5 18.6 12.8 

 $1,000–1,999 26.5 37.1 33.7 8.1 16.2 23.0 

 $2,000–3,999 39.5 44.8 41.5 14.1 24.1 32.8 

 $4,000–7,999 58.2 61.6 50.3 24.0 33.8 41.7 

 $8,000 or more 51.4 66.2 65.3 35.5 55.5 64.5 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

_______

50
Table 1.8—Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who had ever received 

Table 1.8—federal Stafford Loans or Supplemental Loans to Students (SLS), and the average cumulative 

Table 1.8—amount borrowed: All institutions

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 26.7 $4,291 27.6 $5,043 36.0 $7,014 

Type of institution

 Public 4-year 28.5 4,473 32.6 5,377 45.4 7,814 

 Private, not-for-profit 4-year 39.1 5,270 41.8 6,225 52.1 8,472 

 Public 2-year 11.7 3,359 15.5 3,849 18.7 4,692 

 Private, for profit 69.5 3,936 52.5 4,683 62.2 6,139 

Undergraduate class level 

 1st year/freshman 22.2 3,142 22.0 3,359 28.6 4,052 

 2nd year/sophomore 25.3 3,977 26.4 4,132 34.8 5,947 

 3rd year/junior 34.1 4,925 37.1 5,640 51.0 8,984 

 4th or 5th year senior 39.0 6,440 40.3 7,613 52.6 11,690 

Dependency status

 Dependent 25.0 4,028 25.6 4,553 35.8 6,236 

 Independent 28.4 4,508 29.4 5,436 36.2 7,758 

Dependent student income

 Lowest quartile 36.6 3,955 41.5 4,461 41.3 6,021 

 Second quartile 30.2 4,056 30.0 4,624 40.4 6,540 

 Third quartile 23.0 4,051 21.4 4,501 36.0 6,205 

 Highest quartile 11.2 4,126 14.6 4,765 25.4 6,130 

Independent student income

 Lowest quartile 44.1 4,642 45.5 5,665 46.9 8,683 

 Second quartile 33.9 4,456 34.3 5,398 40.7 7,665 

 Third quartile 22.2 4,495 24.2 5,240 33.6 7,318 

 Highest quartile 14.7 4,266 15.1 5,213 24.5 6,878 

Attendance pattern

 Full-time/full-year 31.8 4,541 35.5 5,392 48.1 7,467 

 Full-time/part-year 32.2 3,958 36.2 4,355 35.9 5,697 

 Part-time/full-year 16.9 4,278 21.0 4,974 29.8 7,347 

 Part-time/part-year 14.1 3,904 20.2 4,853 23.0 6,131 

Tuition and fees*

 Less than $1,000 13.3 3,832 16.9 4,265 19.1 5,225 

 $1,000–1,999 28.9 4,095 27.5 4,902 35.5 6,306 

 $2,000–3,999 41.4 4,271 38.3 5,243 47.3 7,779 

 $4,000–7,999 55.1 4,533 47.6 5,293 58.2 7,631 

 $8,000 or more 47.7 5,240 46.1 6,198 58.7 8,448 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

51
Table 2.1—Percentage of all undergraduates who received federal Stafford Loans or Supplemental Loans

Table 2.1—to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, and 1995–96: 

Table 2.1—Public 4-year institutions 

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 18.7 $2,312 23.4 $2,927 34.5 $4,006 

Undergraduate class level 

 1st year/freshman 14.3 1,941 19.2 2,319 33.9 2,619 

 2nd year/sophomore 19.2 1,981 22.7 2,491 31.7 3,415 

 3rd year/junior 19.4 2,371 25.0 3,083 37.3 4,460 

 4th or 5th year senior 21.4 2,641 25.7 3,192 36.2 4,834 

Dependency status

 Dependent 16.9 2,036 21.6 2,586 35.3 3,505 

 Independent 21.8 2,686 26.3 3,397 33.2 4,915 

Dependent student income

 Lowest quartile 29.9 2,003 42.0 2,589 44.6 3,325 

 Second quartile 23.4 2,046 33.1 2,580 45.9 3,599 

 Third quartile 12.6 2,074 15.6 2,509 33.9 3,488 

 Highest quartile 5.1 2,047 7.9 2,690 20.1 3,666 

Independent student income

 Lowest quartile 32.3 2,722 44.0 3,369 52.8 4,808 

 Second quartile 25.1 2,615 27.3 3,385 39.4 5,086 

 Third quartile 16.2 2,740 15.2 3,536 25.8 4,830 

 Highest quartile 8.8 2,647 9.1 3,420 11.7 5,022 

Attendance pattern

 Full-time/full-year 21.9 2,368 28.9 3,014 43.4 4,166 

 Full-time/part-year 15.8 1,929 25.0 2,378 31.2 2,854 

 Part-time/full-year 11.8 2,458 17.1 3,031 28.3 4,242 

 Part-time/part-year 4.5 2,075 11.8 2,820 9.7 3,092 

Tuition and fees*

 Less than $2,000 15.4 2,258 18.5 2,806 22.6 3,447 

 $2,000–2,999 26.3 2,328 29.5 2,940 41.2 4,276 

 $3,000–3,999 27.2 2,318 32.3 3,089 46.5 4,202 

 $4,000–4,999 29.1 2,517 32.8 2,971 47.5 4,294 

 $5,000 or more 22.5 2,762 25.2 3,234 41.5 4,130 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

52
Table 2.2—Percentage of all undergraduates who received federal subsidized Stafford loans, and the

Table 2.2—average amount borrowed in 1989–90, 1992–93, and 1995–96: Public 4-year institutions 

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 18.4 $2,212 23.1 $2,675 29.7 $3,331 

Undergraduate class level 

 1st year/freshman 14.2 1,875 19.0 2,157 27.7 2,219 

 2nd year/sophomore 18.9 1,903 22.5 2,269 27.8 2,864 

 3rd year/junior 19.3 2,245 24.7 2,836 31.8 3,661 

 4th or 5th year senior 21.1 2,532 25.3 2,913 32.2 3,963 

Dependency status

 Dependent 16.9 2,018 21.5 2,522 28.8 3,077 

 Independent 21.3 2,480 25.6 2,891 31.3 3,728 

Dependent student income

 Lowest quartile 29.9 1,991 41.9 2,518 43.1 3,174 

 Second quartile 23.3 2,035 33.0 2,514 44.1 3,286 

 Third quartile 12.5 2,044 15.5 2,472 25.8 2,753 

 Highest quartile 5.0 2,012 7.8 2,622 7.0 2,634 

Independent student income

 Lowest quartile 31.9 2,487 43.2 2,892 50.3 3,833 

 Second quartile 24.4 2,427 26.4 2,809 38.8 3,827 

 Third quartile 15.5 2,583 14.8 3,029 24.4 3,455 

 Highest quartile 8.7 2,439 8.8 2,965 8.7 3,300 

Attendance pattern

 Full-time/full-year 21.7 2,283 28.6 2,771 36.9 3,502 

 Full-time/part-year 15.6 1,829 24.5 2,204 26.5 2,339 

 Part-time/full-year 11.5 2,309 16.9 2,724 25.7 3,442 

 Part-time/part-year 4.5 2,063 11.6 2,478 8.8 2,516 

Tuition and fees*

 Less than $2,000 15.1 2,152 18.2 2,530 19.6 2,870 

 $2,000–2,999 26.2 2,232 29.1 2,704 36.1 3,575 

 $3,000–3,999 27.2 2,295 32.2 2,819 39.9 3,445 

 $4,000–4,999 29.1 2,403 32.6 2,830 41.4 3,535 

 $5,000 or more 22.2 2,647 24.9 2,978 33.5 3,542 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

53
Table 2.3—Percentage of all undergraduates who received federal unsubsidized Stafford Loans or 

Table 2.3—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, 

Table 2.3—and 1995–96: Public 4-year institutions 

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 1.1 $2,629 2.4 $2,760 13.5 $2,913 

Undergraduate class level 

 1st year/freshman 0.4 — 1.3 2,730 11.3 2,421 

 2nd year/sophomore 0.8 — 2.0 2,716 11.0 2,635 

 3rd year/junior 1.4 2,469 2.6 2,787 15.7 3,183 

 4th or 5th year senior 1.6 2,541 3.1 2,711 15.6 3,045 

Dependency status

 Dependent 0.2 — 0.6 2,578 12.6 2,801 

 Independent 2.7 2,591 5.4 2,796 15.1 3,071 

Dependent student income

 Lowest quartile 0.3 — 1.4 2,358 4.9 2,343 

 Second quartile 0.1 — 0.8 — 9.8 2,041 

 Third quartile 0.2 — 0.3 — 17.4 2,723 

 Highest quartile 0.1 — 0.4 — 16.3 3,399 

Independent student income

 Lowest quartile 4.1 2,252 8.9 2,588 22.6 2,697 

 Second quartile 3.1 2,789 5.8 3,112 16.1 3,237 

 Third quartile 2.1 — 3.1 2,856 13.0 3,096 

 Highest quartile 1.0 — 1.8 2,934 7.7 3,892 

Attendance pattern

 Full-time/full-year 1.2 2,619 2.8 2,848 17.1 3,029 

 Full-time/part-year 0.7 — 2.5 2,218 12.7 2,127 

 Part-time/full-year 1.1 — 2.0 2,896 10.4 3,025 

 Part-time/part-year 0.2 — 1.7 2,609 3.7 2,124 

Tuition and fees*

 Less than $2,000 1.1 2,583 2.1 2,732 8.3 2,610 

 $2,000–2,999 1.3 2,649 2.9 2,761 15.6 3,023 

 $3,000–3,999 0.4 — 3.2 2,824 20.1 2,880 

 $4,000–4,999 1.2 — 2.3 2,252 18.4 3,136 

 $5,000 or more 0.8 — 2.3 3,121 17.2 3,070 

—Too few cases for a reliable estimate.

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

54
Table 2.4—Percentage of full-time, full-year undergraduates who received any federal Stafford Loans or

Table 2.4—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93,

Table 2.4—and 1995–96: Public 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 21.9 $2,368 28.9 $3,014 43.4 $4,166 

Undergraduate class level 

 1st year/freshman 16.9 2,022 24.7 2,327 43.2 2,711 

 2nd year/sophomore 20.3 2,037 25.9 2,588 38.5 3,468 

 3rd year/junior 22.5 2,372 29.5 3,152 45.3 4,644 

 4th or 5th year senior 27.3 2,755 32.7 3,388 45.1 5,148 

Dependency status

 Dependent 17.9 2,104 23.7 2,661 39.3 3,662 

 Independent 36.0 2,838 47.2 3,633 59.7 5,473 

Dependent student income

 Lowest quartile 35.7 2,081 46.1 2,651 48.8 3,458 

 Second quartile 26.1 2,117 37.9 2,645 51.5 3,792 

 Third quartile 13.1 2,102 18.9 2,615 38.3 3,642 

 Highest quartile 5.6 2,149 8.4 2,800 22.9 3,774 

Independent student income

 Lowest quartile 37.2 2,837 53.9 3,504 68.0 5,152 

 Second quartile 40.4 2,796 44.7 3,791 63.0 5,829 

 Third quartile 31.6 2,965 38.4 3,829 50.3 5,630 

 Highest quartile 24.8 2,812 31.4 3,739 37.7 5,761 

Tuition and fees*

 Less than $2,000 19.1 2,324 25.9 2,968 36.9 3,772 

 $2,000–2,999 25.8 2,315 30.8 2,935 42.7 4,357 

 $3,000–3,999 26.4 2,366 33.1 3,111 47.4 4,177 

 $4,000–4,999 27.6 2,648 33.8 2,994 48.6 4,282 

 $5,000 or more 22.4 2,819 25.0 3,276 43.1 4,104 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

55
Table 2.5—Percentage of full-time, full-year undergraduates who received federal subsidized Stafford

Table 2.5—loans, and the average amount borrowed in 1989–90, 1992–93, and 1995–96: Public 4-year

Table 2.5—institutions 

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 21.7 $2,283 28.6 $2,771 36.9 $3,502 

Undergraduate class level 

 1st year/freshman 16.8 1,946 24.5 2,231 34.4 2,345 

 2nd year/sophomore 20.0 1,992 25.7 2,359 33.3 2,990 

 3rd year/junior 22.4 2,262 29.1 2,900 38.5 3,806 

 4th or 5th year senior 27.0 2,652 32.3 3,090 39.5 4,256 

Dependency status

 Dependent 17.9 2,089 23.6 2,602 31.9 3,240 

 Independent 35.2 2,634 46.1 3,073 56.5 4,083 

Dependent student income

 Lowest quartile 35.7 2,063 46.0 2,590 47.2 3,285 

 Second quartile 26.1 2,107 37.9 2,588 50.2 3,474 

 Third quartile 13.0 2,083 18.9 2,566 28.5 2,974 

 Highest quartile 5.5 2,129 8.2 2,734 8.2 2,727 

Independent student income

 Lowest quartile 36.7 2,574 53.1 3,017 65.0 4,068 

 Second quartile 39.2 2,616 43.2 3,098 62.3 4,244 

 Third quartile 30.4 2,800 37.4 3,262 48.0 3,963 

 Highest quartile 24.8 2,792 30.1 3,131 27.3 3,662 

Tuition and fees*

 Less than $2,000 18.8 2,226 25.5 2,695 30.8 3,183 

 $2,000–2,999 25.7 2,240 30.5 2,716 37.2 3,651 

 $3,000–3,999 26.4 2,355 33.0 2,840 40.8 3,435 

 $4,000–4,999 27.6 2,532 33.7 2,849 42.1 3,586 

 $5,000 or more 22.1 2,675 24.8 2,996 34.2 3,558 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

56
Table 2.6—Percentage of full-time, full-year undergraduates who received federal unsubsidized Stafford 

Table 2.6—Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 

Table 2.6—1992–93, and 1995–96: Public 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 1.2 $2,619 2.8 $2,848 17.1 $3,029 

Undergraduate class level 

 1st year/freshman 0.5 — 1.1 — 14.8 2,480 

 2nd year/sophomore 0.7 — 2.3 2,880 12.4 2,740 

 3rd year/junior 1.5 — 3.1 2,769 19.0 3,346 

 4th or 5th year senior 1.9 2,574 3.8 2,884 20.2 3,159 

Dependency status

 Dependent 0.2 — 0.6 2,578 14.0 2,906 

 Independent 4.7 2,579 10.2 2,907 29.4 3,259 

Dependent student income

 Lowest quartile 0.5 — 1.3 — 5.5 2,425 

 Second quartile 0.1 — 0.8 — 9.9 2,118 

 Third quartile 0.2 — 0.3 — 19.6 2,783 

 Highest quartile 0.1 — 0.4 — 18.3 3,497 

Independent student income

 Lowest quartile 5.1 2,382 10.7 2,678 30.7 2,805 

 Second quartile 5.8 — 11.0 3,223 28.9 3,558 

 Third quartile 3.4 — 8.8 2,822 27.6 3,370 

 Highest quartile 1.6 — 6.8 — 29.0 4,034 

Tuition and fees*

 Less than $2,000 1.3 2,519 2.8 2,963 13.2 3,099 

 $2,000–2,999 1.0 — 2.8 2,732 16.0 3,113 

 $3,000–3,999 0.4 — 3.3 2,830 20.5 2,828 

 $4,000–4,999 1.2 — 2.2 — 18.2 3,137 

 $5,000 or more 1.0 — 2.4 3,140 18.2 3,037 

—Too few cases for a reliable estimate.

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

57
Table 2.7—Percentage of undergraduates with subsidized Stafford loans and percentage of undergraduates 

Table 2.7—with any Stafford Loans or Supplemental Loans to Students (SLS) who borrowed the maximum 

Table 2.7—annual amounts in 1989–90, 1992–93, and 1995–96: Public 4-year institutions

Percentage who borrowed Percentage who borrowed

maximum subsidized amount maximum total amount

1989–90 1992–93 1995–96 1989–90 1992–93 1995–96

 Total 23.7 40.9 41.1 12.1 24.8 36.6 

Undergraduate class level 

 1st year/freshman 27.5 49.9 58.8 20.3 36.7 57.7 

 2nd year/sophomore 32.1 53.4 47.0 20.8 38.4 45.1 

 3rd year/junior 14.0 29.5 26.5 4.5 16.1 25.3 

 4th or 5th year senior 21.8 34.9 37.1 6.6 16.2 26.9 

Dependency status

 Dependent 20.3 39.5 39.1 20.2 39.3 52.8 

 Independent 28.3 42.8 44.2 1.1 4.9 7.2 

Dependent student income

 Lowest quartile 16.4 36.1 40.8 16.4 36.0 43.7 

 Second quartile 22.9 40.8 43.7 22.9 40.7 50.8 

 Third quartile 22.6 40.2 31.9 22.4 40.1 56.3 

 Highest quartile 21.8 45.6 31.8 21.4 44.8 66.8 

Independent student income

 Lowest quartile 27.2 41.2 47.2 0.9 4.1 4.5 

 Second quartile 26.5 41.1 48.1 0.3 5.2 10.2 

 Third quartile 32.3 53.4 35.6 1.6 7.7 8.3 

 Highest quartile 33.3 43.1 28.2 3.5 4.0 8.7 

Attendance pattern

 Full-time/full-year 24.1 44.4 47.3 13.9 28.7 45.1 

 Full-time/part-year 16.5 23.7 16.4 7.8 13.6 12.1 

 Part-time/full-year 27.2 42.6 36.1 9.2 19.2 20.6 

 Part-time/part-year 19.3 33.5 20.6 1.5 20.3 6.6 

Tuition and fees*

 Less than $2,000 20.6 35.4 29.1 7.5 17.5 21.4 

 $2,000–2,999 23.7 40.3 42.8 13.2 24.1 34.0 

 $3,000–3,999 28.7 48.8 44.4 20.2 33.0 40.3 

 $4,000–4,999 36.2 48.0 49.1 28.3 35.9 47.8 

 $5,000 or more 45.0 53.4 53.6 37.5 44.2 58.6 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

_______

58
Table 2.8—Percentage of all undergraduates attending in 1989–90, 1992–93, and 1995–96 who had ever

Table 2.8—received federal Stafford Loans or Supplemental Loans to Students (SLS), and the average 

Table 2.8—cumulative amount borrowed: Public 4-year institutions

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 28.5 $4,473 32.6 $5,377 45.4 $7,814 

Undergraduate class level 

 1st year/freshman 18.2 2,473 24.5 2,858 39.5 3,386 

 2nd year/sophomore 26.3 3,531 30.8 3,910 42.0 5,546 

 3rd year/junior 30.3 4,366 34.2 5,237 47.6 8,146 

 4th or 5th year senior 38.5 5,848 38.4 6,994 50.6 10,976 

Dependency status

 Dependent 24.6 3,872 28.1 4,489 42.4 6,499 

 Independent 35.6 5,201 40.1 6,421 50.5 9,691 

Dependent student income

 Lowest quartile 38.4 4,083 50.6 4,691 51.9 6,343 

 Second quartile 32.5 3,828 41.7 4,473 52.6 7,045 

 Third quartile 20.7 3,701 21.2 4,173 42.3 6,235 

 Highest quartile 10.4 3,719 12.0 4,326 26.0 6,210 

Independent student income

 Lowest quartile 47.1 5,688 55.8 7,027 66.5 11,103 

 Second quartile 40.9 5,062 43.6 5,983 58.0 9,426 

 Third quartile 28.1 4,944 31.0 6,059 43.9 8,799 

 Highest quartile 20.7 4,321 20.0 5,759 30.9 7,976 

Attendance pattern

 Full-time/full-year 29.5 4,371 34.6 5,387 49.5 7,810 

 Full-time/part-year 29.8 4,272 36.3 5,000 43.8 6,557 

 Part-time/full-year 23.1 4,761 28.6 5,551 42.2 8,767 

 Part-time/part-year 20.0 4,699 28.7 5,441 34.2 7,329 

Tuition and fees*

 Less than $2,000 26.2 4,393 29.9 5,244 38.8 7,048 

 $2,000–2,999 34.9 4,557 36.7 5,468 48.8 8,409 

 $3,000–3,999 34.8 4,446 38.0 5,692 53.8 8,313 

 $4,000–4,999 34.4 4,919 40.3 5,404 54.3 8,100 

 $5,000 or more 27.1 5,158 28.9 5,516 46.2 7,959 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

59
Table 2.9—Percentage of 4th or 5th year seniors in 1989–90, 1992–93, and 1995–96 who had ever received

Table 2.9—federal Stafford Loans or Supplemental Loans to Students (SLS), and the average cumulative 

Table 2.9—amount borrowed: Public 4-year institutions

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 38.5 $5,848 38.4 $6,994 50.6 $10,976 

Dependency status

 Dependent 33.9 5,417 31.1 6,209 44.1 10,078 

 Independent 42.7 6,150 46.5 7,573 57.4 11,677 

Dependent student income

 Lowest quartile 56.2 5,678 63.2 6,562 57.9 10,198 

 Second quartile 42.1 5,866 44.8 6,419 57.1 11,140 

 Third quartile 29.1 4,980 23.6 5,686 46.2 9,494 

 Highest quartile 16.7 4,605 13.8 5,485 24.2 9,172 

Independent student income

 Lowest quartile 54.8 6,914 61.4 8,374 74.0 12,834 

 Second quartile 49.0 5,914 47.5 6,841 61.8 11,765 

 Third quartile 35.3 5,789 39.1 7,048 49.5 11,223 

 Highest quartile 24.1 4,613 24.3 6,910 36.2 8,763 

Attendance pattern

 Full-time/full-year 41.8 5,793 40.6 7,232 53.8 11,445 

 Full-time/part-year 36.7 5,643 43.4 6,892 49.6 10,253 

 Part-time/full-year 28.6 5,835 34.4 6,885 47.6 10,873 

 Part-time/part-year 28.8 5,401 34.0 6,415 41.7 9,131 

Tuition and fees*

 Less than $2,000 36.5 5,613 35.9 6,666 45.8 9,610 

 $2,000–2,999 46.9 6,154 43.1 7,175 52.8 11,306 

 $3,000–3,999 36.3 6,410 40.8 7,727 59.6 12,266 

 $4,000–4,999 52.4 7,394 45.9 7,963 56.4 11,524 

 $5,000 or more 34.9 6,731 33.4 7,373 44.3 12,366 

*Tuition amounts for students in public 4-year institutions include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

60
Table 3.1—Percentage of all undergraduates who received any federal Stafford Loans or Supplemental

Table 3.1—Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, and 1995–96: 

Table 3.1—Private, not-for-profit 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 30.5 $2,746 33.4 $3,300 43.3 $4,254 

Undergraduate class level 

 1st year/freshman 25.0 2,335 30.5 2,635 42.3 2,863 

 2nd year/sophomore 34.0 2,399 32.1 2,696 44.3 3,700 

 3rd year/junior 32.8 2,993 37.0 3,500 47.6 5,096 

 4th or 5th year senior 31.8 3,181 35.2 3,834 42.3 5,401 

Dependency status

 Dependent 33.2 2,549 37.7 2,914 49.5 3,747 

 Independent 25.7 3,230 26.8 4,144 31.9 5,689 

Dependent student income

 Lowest quartile 43.7 2,510 56.3 2,806 56.9 3,714 

 Second quartile 48.1 2,577 58.1 2,940 63.1 3,824 

 Third quartile 37.4 2,515 41.7 2,973 53.2 3,779 

 Highest quartile 14.0 2,647 21.2 2,982 32.5 3,646 

Independent student income

 Lowest quartile 40.2 3,172 47.2 3,832 50.1 5,821 

 Second quartile 32.8 3,274 29.2 4,571 36.8 5,542 

 Third quartile 20.5 3,246 19.7 4,113 31.9 5,634 

 Highest quartile 13.2 3,271 13.9 4,406 16.1 5,698 

Attendance pattern

 Full-time/full-year 38.9 2,759 42.2 3,317 55.1 4,235 

 Full-time/part-year 27.4 2,405 37.2 2,886 36.4 3,651 

 Part-time/full-year 14.7 2,992 21.0 3,665 27.2 5,299 

 Part-time/part-year 5.4 2,426 12.0 3,137 12.6 3,574 

Tuition and fees

 Less than $4,000 14.5 2,567 16.3 3,153 16.6 3,543 

 $4,000–7,999 40.7 2,782 41.3 3,313 51.5 4,383 

 $8,000–11,999 38.5 2,752 46.9 3,528 57.7 4,586 

 $12,000–15,999 34.8 2,839 39.5 3,262 59.8 4,272 

 $16,000 or more 36.6 2,696 39.0 3,053 46.5 4,164 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

61
Table 3.2—Percentage of all undergraduates who received federal subsidized Stafford loans, and the average

Table 3.2—amount borrowed in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 29.9 $2,624 33.1 $2,920 38.9 $3,565 

Undergraduate class level 

 1st year/freshman 24.8 2,261 30.4 2,419 37.3 2,431 

 2nd year/sophomore 33.6 2,260 31.7 2,411 39.5 3,122 

 3rd year/junior 32.2 2,896 36.4 3,156 43.4 4,247 

 4th or 5th year senior 30.8 3,036 35.0 3,315 38.5 4,456 

Dependency status

 Dependent 33.0 2,530 37.7 2,839 43.8 3,443 

 Independent 24.4 2,865 26.0 3,103 29.8 3,894 

Dependent student income

 Lowest quartile 43.5 2,499 56.3 2,719 55.3 3,432 

 Second quartile 48.1 2,562 58.0 2,873 61.9 3,572 

 Third quartile 37.2 2,489 41.7 2,912 48.1 3,419 

 Highest quartile 13.8 2,616 21.1 2,905 20.6 3,246 

Independent student income

 Lowest quartile 39.3 2,871 46.5 3,025 49.1 4,038 

 Second quartile 32.3 2,901 28.6 3,177 35.8 3,795 

 Third quartile 18.7 2,797 18.4 3,101 30.3 3,825 

 Highest quartile 11.6 2,861 13.5 3,219 12.3 3,806 

Attendance pattern

 Full-time/full-year 38.6 2,671 42.0 2,983 49.6 3,662 

 Full-time/part-year 26.9 2,260 37.0 2,599 33.4 2,815 

 Part-time/full-year 13.8 2,698 20.6 2,980 24.6 3,899 

 Part-time/part-year 5.2 2,242 11.0 2,598 11.2 2,550 

Tuition and fees

 Less than $4,000 13.8 2,356 15.9 2,657 14.9 2,837 

 $4,000–7,999 39.8 2,641 40.8 2,842 46.7 3,323 

 $8,000–11,999 38.2 2,677 46.6 3,061 51.2 3,789 

 $12,000–15,999 34.8 2,734 39.4 3,027 53.7 3,690 

 $16,000 or more 36.6 2,686 38.9 2,946 43.1 3,792 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

62
Table 3.3—Percentage of all undergraduates who received federal unsubsidized Stafford Loans or 

Table 3.3—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, 

Table 3.3—and 1995–96: Private, not-for-profit 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 2.1 $3,080 4.2 $3,290 13.9 $3,280 

Undergraduate class level 

 1st year/freshman 1.1 2,938 2.1 3,213 11.6 2,639 

 2nd year/sophomore 2.0 3,123 3.2 3,133 13.6 3,005 

 3rd year/junior 2.2 2,897 4.5 3,236 16.1 3,616 

 4th or 5th year senior 2.8 3,219 5.8 3,327 15.4 3,668 

Dependency status

 Dependent 0.5 2,827 1.0 2,960 11.4 3,021 

 Independent 5.0 3,135 9.0 3,349 18.2 3,576 

Dependent student income

 Lowest quartile 0.5 — 1.8 — 6.9 3,139 

 Second quartile 0.5 — 1.5 — 7.4 2,702 

 Third quartile 0.7 — 0.8 — 13.0 2,808 

 Highest quartile 0.4 — 0.6 — 16.0 3,218 

Independent student income

 Lowest quartile 6.2 3,058 13.2 3,031 27.1 3,450 

 Second quartile 5.9 3,161 12.2 3,477 19.5 3,480 

 Third quartile 5.3 3,110 6.9 3,493 17.9 3,560 

 Highest quartile 3.4 3,241 4.8 3,663 11.6 3,904 

Attendance pattern

 Full-time/full-year 1.8 3,159 4.3 3,438 15.4 3,337 

 Full-time/part-year 2.4 2,906 4.3 2,601 13.8 2,818 

 Part-time/full-year 2.4 3,215 4.6 3,438 13.2 3,640 

 Part-time/part-year 0.6 — 3.1 2,886 6.7 2,502 

Tuition and fees

 Less than $4,000 1.8 3,085 3.0 2,974 6.0 2,730 

 $4,000–7,999 3.3 3,066 6.5 3,242 22.1 3,182 

 $8,000–11,999 1.6 2,987 6.3 3,627 20.3 3,462 

 $12,000–15,999 1.3 3,324 3.0 3,197 16.8 3,420 

 $16,000 or more 0.4 — 1.3 — 9.0 3,368 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

63
Table 3.4—Percentage of full-time, full-year undergraduates who borrowed any federal Stafford Loans or

Table 3.4—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93,

Table 3.4—and 1995–96: Private, not-for-profit 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 38.9 $2,759 42.2 $3,317 55.1 $4,235 

Undergraduate class level 

 1st year/freshman 34.7 2,362 40.3 2,632 57.7 2,834 

 2nd year/sophomore 39.7 2,403 36.9 2,647 52.9 3,658 

 3rd year/junior 40.8 3,032 45.9 3,543 56.9 5,045 

 4th or 5th year senior 41.4 3,220 44.0 3,946 52.3 5,581 

Dependency status

 Dependent 36.7 2,592 39.6 2,959 54.0 3,797 

 Independent 50.3 3,384 53.6 4,442 60.8 6,270 

Dependent student income

 Lowest quartile 57.4 2,594 62.3 2,841 62.0 3,851 

 Second quartile 55.3 2,606 61.7 2,988 67.0 3,817 

 Third quartile 41.8 2,555 45.8 3,029 59.6 3,809 

 Highest quartile 14.1 2,632 21.7 3,009 35.8 3,697 

Independent student income

 Lowest quartile 50.6 3,287 58.6 4,001 69.0 6,136 

 Second quartile 54.2 3,437 53.9 4,781 57.2 6,327 

 Third quartile 51.3 3,529 45.8 4,761 60.2 6,195 

 Highest quartile 42.5 3,413 47.5 5,205 45.7 6,827 

Tuition and fees

 Less than $4,000 29.4 2,771 30.1 3,491 28.0 3,513 

 $4,000–7,999 43.2 2,727 46.2 3,294 63.6 4,228 

 $8,000–11,999 39.4 2,764 48.4 3,471 61.6 4,490 

 $12,000–15,999 34.8 2,822 40.2 3,273 61.3 4,205 

 $16,000 or more 36.4 2,750 37.9 3,063 47.2 4,132 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

64
Table 3.5—Percentage of full-time, full-year undergraduates who received federal subsidized Stafford loans,

Table 3.5—and the average amount borrowed in 1989–90, 1992–93, and 1995–96: Private, not-for-profit

Table 3.5—4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 38.6 $2,671 42.0 $2,983 49.6 $3,662 

Undergraduate class level 

 1st year/freshman 34.5 2,313 40.3 2,457 50.8 2,519 

 2nd year/sophomore 39.5 2,304 36.7 2,466 48.1 3,174 

 3rd year/junior 40.5 2,952 45.6 3,205 51.7 4,329 

 4th or 5th year senior 40.5 3,112 43.7 3,475 47.9 4,715 

Dependency status

 Dependent 36.6 2,576 39.5 2,891 48.0 3,509 

 Independent 48.6 3,038 52.8 3,278 58.0 4,323 

Dependent student income

 Lowest quartile 57.2 2,582 62.3 2,777 59.9 3,584 

 Second quartile 55.3 2,600 61.5 2,920 65.9 3,598 

 Third quartile 41.6 2,525 45.8 2,955 53.9 3,482 

 Highest quartile 14.0 2,621 21.7 2,945 23.9 3,269 

Independent student income

 Lowest quartile 49.2 3,052 57.9 3,167 67.4 4,272 

 Second quartile 53.4 3,050 53.2 3,254 56.8 4,305 

 Third quartile 47.9 3,053 44.2 3,517 57.9 4,434 

 Highest quartile 40.1 2,951 47.5 3,477 36.0 4,354 

Tuition and fees

 Less than $4,000 28.5 2,599 29.6 2,962 26.0 3,194 

 $4,000–7,999 42.4 2,627 46.0 2,864 56.7 3,353 

 $8,000–11,999 39.2 2,699 48.2 3,046 54.5 3,787 

 $12,000–15,999 34.8 2,733 40.2 3,034 55.0 3,657 

 $16,000 or more 36.4 2,739 37.8 2,948 43.8 3,786 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

65
Table 3.6—Percentage of full-time, full-year undergraduates who received federal unsubsidized Stafford 

Table 3.6—Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 

Table 3.6—1992–93, and 1995–96: Private, not-for-profit 4-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 1.8 $3,159 4.3 $3,438 15.4 $3,337 

Undergraduate class level 

 1st year/freshman 1.1 2,896 2.0 3,507 13.7 2,619 

 2nd year/sophomore 1.5 3,297 2.3 — 13.4 3,034 

 3rd year/junior 2.0 2,939 4.9 3,421 17.6 3,609 

 4th or 5th year senior 2.5 3,403 6.2 3,469 17.1 3,890 

Dependency status

 Dependent 0.5 2,884 0.9 3,188 11.9 3,051 

 Independent 8.4 3,245 18.6 3,488 33.6 3,868 

Dependent student income

 Lowest quartile 0.8 — 1.4 — 7.2 3,324 

 Second quartile 0.3 — 1.5 — 7.3 2,565 

 Third quartile 0.8 — 1.1 — 13.7 2,859 

 Highest quartile 0.3 — 0.4 — 16.7 3,236 

Independent student income

 Lowest quartile 6.4 3,212 16.4 3,120 37.6 3,597 

 Second quartile 9.4 3,159 22.7 3,735 31.9 3,673 

 Third quartile 12.0 — 16.5 3,792 28.3 4,114 

 Highest quartile 8.9 — 22.3 3,683 33.6 4,630 

Tuition and fees

 Less than $4,000 2.5 — 5.1 — 4.9 —

 $4,000–7,999 2.6 3,078 6.0 3,409 24.6 3,203 

 $8,000–11,999 1.3 3,189 6.0 3,579 20.7 3,399 

 $12,000–15,999 1.2 — 3.1 3,232 16.7 3,369 

 $16,000 or more 0.4 — 1.4 — 8.8 3,318 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

66
Table 3.7—Percentage of undergraduates with subsidized Stafford loans and percentage of undergraduates 

Table 3.7—with any Stafford Loans or Supplemental Loans to Students (SLS) who borrowed the maximum 

Table 3.7—annual amounts in 1989–90, 1992–93, and 1995–96: Private, not-for-profit 4-year institutions

Percentage who borrowed Percentage who borrowed

maximum subsidized amount maximum total amount

1989–90 1992–93 1995–96 1989–90 1992–93 1995–96

 Total 42.5 58.8 60.6 29.9 45.2 56.6 

Undergraduate class level 

 1st year/freshman 50.0 70.0 75.3 42.0 61.0 73.2 

 2nd year/sophomore 49.6 67.6 63.2 37.8 53.9 62.7 

 3rd year/junior 31.4 44.4 45.6 19.4 31.8 45.2 

 4th or 5th year senior 37.9 53.7 56.5 20.3 36.2 45.0 

Dependency status

 Dependent 40.5 58.6 62.5 40.4 58.5 69.8 

 Independent 47.7 59.1 55.5 4.2 16.3 19.5 

Dependent student income

 Lowest quartile 40.8 57.0 60.6 40.7 57.0 64.0 

 Second quartile 42.5 59.2 68.6 42.5 59.1 70.7 

 Third quartile 39.0 62.1 62.1 38.8 62.1 71.1 

 Highest quartile 38.9 57.2 54.4 38.3 57.0 73.7 

Independent student income

 Lowest quartile 46.5 57.4 61.8 3.7 12.4 20.1 

 Second quartile 50.4 64.3 56.2 4.7 22.2 20.5 

 Third quartile 45.5 54.2 53.5 4.4 15.6 17.4 

 Highest quartile 48.2 61.6 40.4 4.1 18.9 19.8 

Attendance pattern

 Full-time/full-year 44.1 62.5 66.4 33.5 51.0 64.7 

 Full-time/part-year 32.1 42.3 34.4 19.9 30.4 29.9 

 Part-time/full-year 43.4 57.4 53.2 14.4 32.1 34.0 

 Part-time/part-year 21.0 44.5 23.7 4.7 27.9 13.5 

Tuition and fees

 Less than $4,000 34.5 46.3 33.1 16.1 25.9 16.9 

 $4,000–7,999 45.1 55.4 48.9 28.3 34.4 38.0 

 $8,000–11,999 44.8 66.5 68.1 36.9 56.0 62.0 

 $12,000–15,999 40.9 63.4 69.1 36.1 55.9 72.4 

 $16,000 or more 33.2 58.7 66.6 30.3 52.6 68.6 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

_______

67
Table 3.8—Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who had ever received

Table 3.8—federal Stafford Loans or Supplemental Loans to Students (SLS), and the average cumulative 

Table 3.8—amount borrowed: Private, not-for-profit 4-year institutions 

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 39.1 $5,270 41.8 $6,225 52.1 $8,472 

Undergraduate class level 

 1st year/freshman 28.5 2,672 35.5 2,981 48.0 3,677 

 2nd year/sophomore 40.6 4,273 39.5 4,700 51.0 6,610 

 3rd year/junior 43.7 5,792 45.7 6,307 56.3 9,803 

 4th or 5th year senior 47.2 7,551 46.7 9,013 55.2 13,086 

Dependency status

 Dependent 40.5 4,833 42.6 5,419 54.4 7,352 

 Independent 36.8 6,195 40.6 7,537 47.9 10,794 

Dependent student income

 Lowest quartile 51.1 4,811 63.1 5,279 63.7 7,591 

 Second quartile 55.0 5,032 63.8 5,675 67.5 7,539 

 Third quartile 45.9 4,756 45.9 5,339 57.7 7,469 

 Highest quartile 20.7 4,687 24.9 5,335 36.9 6,701 

Independent student income

 Lowest quartile 51.9 6,710 59.9 7,846 63.6 11,897 

 Second quartile 44.9 6,264 47.4 7,813 52.4 11,258 

 Third quartile 33.5 5,965 35.2 7,040 49.1 10,629 

 Highest quartile 21.9 5,414 24.1 7,080 33.3 9,043 

Attendance pattern

 Full-time/full-year 45.2 5,237 46.8 6,146 59.2 8,212 

 Full-time/part-year 39.8 5,564 47.3 5,674 48.7 8,655 

 Part-time/full-year 26.4 5,815 32.5 6,565 42.5 9,585 

 Part-time/part-year 20.5 5,022 30.2 6,863 33.0 8,871 

Tuition and fees

 Less than $4,000 26.7 4,871 31.4 5,860 34.7 7,462 

 $4,000–7,999 48.3 5,451 50.0 6,509 61.0 9,283 

 $8,000–11,999 44.8 5,295 50.9 6,606 61.4 9,246 

 $12,000–15,999 41.1 5,326 43.0 6,041 63.6 8,385 

 $16,000 or more 40.4 5,567 41.8 5,708 50.0 8,055 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

68
Table 3.9—Percentage of 4th and 5th year seniors in 1989–90, 1992–93, and 1995–96 who had ever received

Table 3.9—federal Stafford Loans or Supplemental Loans to Students (SLS), and the average cumulative 

Table 3.9—amount borrowed: Private, not-for-profit 4-year institutions

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 47.2 $7,551 46.7 $9,013 55.2 $13,086 

Dependency status

 Dependent 48.8 7,403 46.3 8,362 52.9 12,785 

 Independent 45.3 7,755 47.2 9,734 58.0 13,436 

Dependent student income

 Lowest quartile 63.7 7,305 76.2 8,670 67.2 12,745 

 Second quartile 68.1 8,134 69.2 8,840 69.3 13,300 

 Third quartile 54.9 7,461 49.5 8,619 54.2 13,062 

 Highest quartile 26.8 6,586 28.8 7,593 32.3 11,779 

Independent student income

 Lowest quartile 59.3 8,522 69.7 10,190 69.0 15,051 

 Second quartile 54.9 8,107 54.0 10,488 64.0 14,621 

 Third quartile 42.7 7,271 44.7 9,032 64.5 12,479 

 Highest quartile 27.5 6,249 27.6 8,684 41.0 11,205 

Attendance pattern

 Full-time/full-year 53.9 7,898 51.7 9,178 59.0 13,559 

 Full-time/part-year 42.7 7,981 51.9 8,882 52.4 14,082 

 Part-time/full-year 33.2 7,301 38.4 8,739 50.7 11,779 

 Part-time/part-year 30.9 5,850 37.4 8,738 47.1 11,560 

Tuition and fees

 Less than $4,000 35.3 6,440 36.7 7,707 43.4 9,829 

 $4,000–7,999 57.5 7,785 57.5 9,232 65.3 14,024 

 $8,000–11,999 52.0 8,055 53.2 9,923 64.4 14,627 

 $12,000–15,999 48.0 7,793 47.6 9,186 61.3 13,566 

 $16,000 or more 47.3 8,697 43.3 8,912 47.1 13,860 

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

69
Table 4.1—Percentage of all undergraduates who received any federal Stafford Loans or Supplemental 

Table 4.1—Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93, and 1995–96: 

Table 4.1—Public 2-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 4.4 $2,086 5.8 $2,587 5.9 $2,869 

Undergraduate class level 

 1st year/freshman 3.8 2,050 4.1 2,305 5.1 2,534 

 2nd year/sophomore 5.6 2,066 7.3 2,472 8.1 3,279 

Dependency status

 Dependent 3.6 1,652 5.4 2,308 6.0 2,234 

 Independent 4.8 2,247 6.0 2,732 5.8 3,268 

Dependent student income

 Lowest quartile 7.0 1,676 11.5 2,465 6.2 2,199 

 Second quartile 3.5 — 4.9 2,021 6.9 2,293 

 Third quartile 2.7 — 2.9 — 7.4 2,152 

 Highest quartile 0.7 — 1.5 — 2.6 —

Independent student income

 Lowest quartile 11.6 2,199 15.4 2,583 10.1 3,248 

 Second quartile 5.3 2,378 6.5 2,850 8.6 3,441 

 Third quartile 3.4 2,287 4.4 2,795 4.0 3,122 

 Highest quartile 2.0 — 1.7 — 1.9 —

Attendance pattern

 Full-time/full-year 9.3 2,117 10.4 2,421 14.7 3,047 

 Full-time/part-year 5.4 1,708 10.7 2,036 4.9 2,173 

 Part-time/full-year 2.1 2,111 4.6 2,616 7.2 2,983 

 Part-time/part-year 1.1 — 4.0 3,008 1.3 2,322 

Tuition and fees

 Less than $500 2.2 2,240 3.7 2,791 1.6 2,481 

 $500–999 7.8 2,026 7.3 2,321 7.6 2,690 

 $1,000–1,499 13.2 2,094 10.3 2,503 14.9 3,179 

 $1,500–1,999 13.3 — 13.2 2,458 19.6 2,461 

 $2,000 or more 14.1 — 14.6 2,569 21.0 3,370 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

70
Table 4.2—Percentage of all undergraduates who received federal subsidized Stafford loans, and the average

Table 4.2—amount borrowed in 1989–90, 1992–93, and 1995–96: Public 2-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 4.3 $1,943 5.7 $2,217 4.9 $2,219 

Undergraduate class level 

 1st year/freshman 3.7 1,921 4.0 1,978 4.2 2,064 

 2nd year/sophomore 5.5 1,966 7.3 2,117 6.8 2,440 

Dependency status

 Dependent 3.5 1,608 5.3 2,144 4.1 1,927 

 Independent 4.7 2,068 5.8 2,256 5.4 2,352 

Dependent student income

 Lowest quartile 7.0 1,595 11.5 2,225 5.6 2,106 

 Second quartile 3.1 — 4.9 1,921 6.1 1,924 

 Third quartile 2.7 — 2.9 — 3.0 —

 Highest quartile 0.7 — 1.5 — 0.5 —

Independent student income

 Lowest quartile 11.5 2,107 15.3 2,237 9.7 2,462 

 Second quartile 5.1 2,005 6.3 2,282 8.4 2,329 

 Third quartile 3.2 2,114 4.1 2,296 3.6 2,185 

 Highest quartile 1.8 — 1.6 — 1.4 —

Attendance pattern

 Full-time/full-year 8.8 1,978 10.1 2,107 12.1 2,312 

 Full-time/part-year 5.3 1,699 10.5 1,854 4.4 1,809 

 Part-time/full-year 2.0 2,111 4.5 2,112 6.0 2,306 

 Part-time/part-year 1.0 — 4.0 2,607 1.1 1,887 

Tuition and fees

 Less than $500 2.2 1,963 3.7 2,432 1.3 1,883 

 $500–999 7.6 1,925 7.2 2,022 6.5 2,113 

 $1,000–1,499 12.3 2,070 9.9 2,091 12.5 2,327 

 $1,500–1,999 13.2 — 12.9 2,094 15.7 2,277 

 $2,000 or more 14.1 — 14.2 2,072 17.3 2,463 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

71
Table 4.3—Percentage of all undergraduates who received federal unsubsidized Stafford Loans or 

Table 4.3—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93,

Table 4.3—and 1995–96: Public 2-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 0.4 $2,365 0.8 $3,123 2.5 $2,421 

Undergraduate class level 

 1st year/freshman 0.4 — 0.6 3,071 1.9 2,273 

 2nd year/sophomore 0.4 — 0.8 — 3.9 2,541 

Dependency status

 Dependent 0.2 — 0.3 — 2.9 1,940 

 Independent 0.5 — 1.0 3,119 2.2 2,801 

Dependent student income

 Lowest quartile 0.4 — 0.8 — 1.5 —

 Second quartile 0.3 — 0.1 — 2.4 —

 Third quartile 0 — 0 — 5.2 2,058 

 Highest quartile 0 — 0.3 — 2.2 —

Independent student income

 Lowest quartile 1.0 — 1.9 — 3.4 —

 Second quartile 0.8 — 1.3 — 3.6 —

 Third quartile 0.4 — 0.9 — 1.5 —

 Highest quartile 0.1 — 0.4 — 0.9 —

Attendance pattern

 Full-time/full-year 0.9 — 1.2 — 6.4 2,637 

 Full-time/part-year 0.2 — 1.0 — 1.9 —

 Part-time/full-year 0.2 — 0.8 — 3.0 2,501 

 Part-time/part-year 0.1 — 0.5 — 0.5 —

Tuition and fees

 Less than $500 0.3 — 0.4 — 0.5 —

 $500–999 0.7 — 0.9 — 2.9 2,311 

 $1,000–1,499 1.2 — 1.6 — 7.5 2,435 

 $1,500–1,999 1.0 — 1.6 — 7.6 —

 $2,000 or more 0 — 2.6 — 10.1 —

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

72
Table 4.4—Percentage of full-time, full-year undergraduates who received any federal Stafford Loans or 

Table 4.4—Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 1992–93,

Table 4.4—and 1995–96: Public 2-year institutions

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 9.3 $2,117 10.4 $2,421 14.7 $3,047 

Undergraduate class level 

 1st year/freshman 7.4 2,141 8.5 2,446 14.5 2,674 

 2nd year/sophomore 13.0 2,103 13.1 2,340 15.8 3,358 

Dependency status

 Dependent 4.6 1,448 4.9 1,780 11.1 2,333 

 Independent 17.2 2,418 18.8 2,676 21.8 3,749 

 Total 8.8 1,978 10.1 2,107 12.1 2,312 

Undergraduate class level 

 1st year/freshman 7.1 1,969 7.9 2,102 12.5 2,222 

 2nd year/sophomore 12.2 1,992 13.1 2,093 12.0 2,441 

Dependency status

 Dependent 4.3 1,428 4.9 1,780 7.8 1,959 

 Independent 16.4 2,220 18.0 2,243 20.4 2,571 

 Total 0.9 2,546 1.2 3,276 6.4 2,637 

Undergraduate class level 

 1st year/freshman 0.7 — 1.3 — 4.6 —

 2nd year/sophomore 1.3 — 1.0 — 8.4 —

Dependency status

 Dependent 0.3 — 0 — 4.9 —

 Independent 1.9 — 3.1 — 9.4 —

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

Subsidized Stafford or SLS loans

Unsubsidized Stafford or SLS loans

1989–90 1992–93 1995–96

Any Stafford or SLS loans

_______

73
Table 4.5—Percentage of undergraduates with subsidized Stafford loans and percentage of undergraduates

Table 4.7—with any Stafford Loans or Supplemental Loans to Students (SLS) who borrowed the maximum 

Table 4.7—annual amounts in 1989–90, 1992–93, and 1995–96: Public 2-year institutions

Percentage who borrowed Percentage who borrowed

maximum subsidized amount maximum total amount

1989–90 1992–93 1995–96 1989–90 1992–93 1995–96

 Total 34.6 41.6 41.4 7.2 16.5 22.5 

Undergraduate class level 

 1st year/freshman 36.8 39.7 51.8 9.0 15.9 29.5 

 2nd year/sophomore 34.1 50.7 31.2 5.6 17.0 15.3 

Dependency status

 Dependent 24.5 38.1 30.3 23.8 37.9 39.4 

 Independent 38.4 43.4 46.4 1.0 5.4 11.8 

Dependent student income

 Lowest quartile 17.9 41.5 32.0 17.9 41.5 30.3 

 Second quartile — 23.9 34.0 — 23.9 43.3 

 Third quartile ——— —— 34.8 

 Highest quartile ——— ———

Independent student income

 Lowest quartile 39.3 42.1 51.3 0 3.1 12.3 

 Second quartile 35.5 42.3 48.8 2.0 7.3 13.7 

 Third quartile 43.8 48.7 33.9 2.5 5.5 8.6 

 Highest quartile ——— ———

Attendance pattern

 Full-time/full-year 35.6 38.5 45.3 4.7 9.7 29.6 

 Full-time/part-year 30.5 31.9 23.1 9.0 8.4 7.8 

 Part-time/full-year 39.4 37.0 44.3 0.3 9.8 20.9 

 Part-time/part-year — 53.6 30.3 — 33.8 12.9 

Tuition and fees

 Less than $500 35.6 48.5 30.2 12.3 24.5 8.2 

 $500–999 33.5 36.8 38.3 3.6 9.1 19.8 

 $1,000–1,499 40.2 37.5 47.4 0 5.4 30.1 

 $1,500–1,999 — 33.4 34.0 — 16.7 12.1 

 $2,000 or more — 40.9 49.5 — 20.5 34.4 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

_______

74
Table 4.6—Percentage of all undergraduates in 1989–90, 1992–93, and 1995–96 who ever received federal

Table 4.6—Stafford Loans or Supplemental Loans to Students (SLS), and the average cumulative amount 

Table 4.6—borrowed: Public 2-year institutions

 Percent Average Percent Average Percent Average 

 who ever cumulative who ever cumulative who ever cumulative

borrowed amount borrowed amount borrowed amount

 Total 11.7 $3,359 15.5 $3,849 18.7 $4,692 

Undergraduate class level 

 1st year/freshman 9.8 3,045 13.2 3,307 16.4 4,173 

 2nd year/sophomore 14.8 3,482 18.1 3,607 23.9 5,172 

Dependency status

 Dependent 8.4 3,054 10.6 3,388 12.4 3,407 

 Independent 13.4 3,453 18.4 4,002 22.5 5,119 

Dependent student income

 Lowest quartile 14.3 3,059 18.7 3,346 14.4 3,077 

 Second quartile 8.8 2,747 10.0 3,377 12.7 3,353 

 Third quartile 5.6 — 8.5 3,836 12.3 3,756 

 Highest quartile 3.6 — 3.4 — 9.6 3,521 

Independent student income

 Lowest quartile 24.4 3,315 29.5 3,862 26.0 5,052 

 Second quartile 15.1 3,463 22.5 4,080 25.4 5,336 

 Third quartile 11.1 3,604 17.5 4,107 23.0 5,263 

 Highest quartile 7.8 3,479 9.6 3,898 16.9 4,691 

Attendance pattern

 Full-time/full-year 13.8 3,177 16.9 3,527 22.1 4,021 

 Full-time/part-year 14.3 3,183 20.4 3,061 18.4 3,662 

 Part-time/full-year 8.7 3,200 13.6 3,727 18.8 5,186 

 Part-time/part-year 9.4 3,606 15.7 4,269 17.7 4,964 

Tuition and fees

 Less than $500 9.5 3,495 14.3 4,036 15.9 4,812 

 $500–999 15.4 3,331 16.7 3,462 20.0 4,516 

 $1,000–1,499 20.7 3,131 17.5 3,531 24.8 4,856 

 $1,500–1,999 20.6 2,763 18.7 3,717 28.6 3,502 

 $2,000 or more 17.7 — 24.5 3,825 30.3 5,156 

—Too few cases for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96

_______

75
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77

Appendix B—Glossary

This glossary describes the variables used in this report. The items were taken directly from the NCES NPSAS: 90,

93, and 96 undergraduate Data Analysis System (DAS), an NCES software application that generates tables from the

NPSAS:90, 93, and 96 data (see appendix B for a description of the DAS). The glossary is in alphabetical order by

the variable label in the DAS, shown in bold, capital letters and displayed along the right-hand column.

Glossary Index

INSTITUTIONAL AND STUDENT

CHARACTERISTICS

Type of institution

NPSAS:90 ...............................................AIDSECT

NPSAS:93 ...............................................AIDSECT

NPSAS:96 ...............................................AIDSECT

Undergraduate class level

NPSAS:90 ........................................... LOANLVL2

NPSAS:93 ........................................... LOANLVL2

NPSAS:96 ........................................... UGLEVEL2

Dependency status

NPSAS:90 ................................................DEPEND

NPSAS:93 ................................................DEPEND

NPSAS:96 ................................................DEPEND

Dependent student income

NPSAS:90 .................................................PCTDEP

NPSAS:93 ................................................PCTDEP

NPSAS:96 .................................................PCTDEP

Independent student income

NPSAS:90 .............................................PCTINDEP

NPSAS:93 ............................................PCTINDEP

NPSAS:96 .............................................PCTINDEP

Attendance pattern

NPSAS:90 ............................................ATTNST8A

NPSAS:93 ............................................ATTNST8A

NPSAS:96 ........................................... ATTNSTAT

Tuition and fees

NPSAS:90 ............................................. TUITCST2

NPSAS:93 ............................................. TUITION2

NPSAS:96 ............................................. TUITION2

STAFFORD/SLS LOAN VARIABLES

Stafford/SLS total loans

NPSAS:90 ................................................SLS_STR

NPSAS:93 ................................................SLS_STR

NPSAS:96 ...........................................STAFFAMT

Subsidized Stafford loans

NPSAS:90 ................................................. STAFFR

NPSAS:93 ................................................. STAFFR

NPSAS:96 .............................................. STAFSUB

Unsubsidized Stafford and SLS loans

NPSAS:90 ...................................................... SLSR

NPSAS:93 ...................................................... SLSR

NPSAS:96 ........................................... STAFUNSB

Borrowed maximum subsidized loan

 amount

NPSAS:90 ............................................ STFCAT1R

NPSAS:93 ............................................ STFCAT1R

NPSAS:96 .............................................STAFFCT1

Borrowed maximum total Stafford/

 SLS loan amount

NPSAS:90 ............................................ STFCAT2R

NPSAS:93 ............................................ STFCAT2R

NPSAS:96 ............................................ STAFCT2R

Cumulative Stafford/SLS loan amount

NPSAS:90 ........................................... STCUM89A

NPSAS:93 ........................................... STCUM92A

NPSAS:96 ........................................... STCUM95A

Stafford/SLS loan combination

NPSAS:90 ............................................STAFTYPR

NPSAS:93 ............................................STAFTYPR

NPSAS:96 ............................................STAFTYPE

Grants

NPSAS:90 ............................................. TOTGRTR

NPSAS:93 ............................................. TOTGRTR

NPSAS:96 ................................................TOTGRT
Appendix B—Glossary

78

Type of institution AIDSECT (NPSAS:90)

AIDSECT (NPSAS:93)

AIDSECT (NPSAS:96)

Indicates the level and control of the sampled NPSAS institution. Institution level concerns the institution’s highest

offering. Control concerns the source of revenue and control of operations. Four-year institutions offer bachelor’s or

higher degrees, while 2-year institutions offer associate’s or lower degrees. The private, for-profit institutions are

primarily less-than-4 year, although a small percentage of students in bachelor’s degree programs are included. Public less-than-2-year and private, not-for-profit less-than-4-year are either aggregated as “other” or not shown in the

tables, although they are included in the totals. Students attending more than one institution during the year (about 5

percent) are excluded from the type of institution category, but are included in the totals.

Public, 4-year

Private, not-for-profit 4-year

Public, 2-year

Private, for-profit

Attendance pattern ATTNST8A (NPSAS:90)

ATTNST8A (NPSAS:93)

ATTNSTAT (NPSAS:96)

Students were considered to have been enrolled for a full year if they were enrolled for 8 or more months during the

NPSAS survey year. Months did not have to be contiguous or at the same institution, and students did not have to be

enrolled for a full month in order to be considered enrolled for that month.

Full-time, full-year Students were enrolled at least 8 months full time during survey year. Additional months enrolled could be part time.

Full-time, part-year Students were enrolled less than 8 months during the survey

year and attending full time in all of these months.

Part-time, full-year Students were enrolled 8 or more months during the survey

year but less than 8 months were full time.

Part-time, part-year Students were enrolled less than 8 months during the survey

year and some of these months were part time.

Dependency status DEPEND (NPSAS:90)

DEPEND (NPSAS:93)

DEPEND (NPSAS:96)

Dependent

Independent

Undergraduates are assumed to be dependent unless they meet one of the criteria for independent status. These criteria were different from 1987–1993 and from 1993–1998. In 1989–90 and 1992–93 the criteria for independent undergraduate student status were the following:

1. Student was 24 or older on December 31 of the current academic year.

2. Student was married, and not claimed by parents on current year tax returns.

3. Student had legal dependents other than a spouse.

4. Student was a veteran.
Appendix B—Glossary

79

5. Student was an orphan or ward of the court.

6. Student was a single undergraduate, not claimed as a dependent by parents on either the current or the

prior year tax returns, and was self sufficient for two years prior to receiving any federal aid.

In 1995–96 undergraduates were considered to be independent if they met one of the following criteria.

1. Student was age 24 or older on December 31, 1995;

2. Student was married;

3. Student had legal dependents other than a spouse;

4. Student was a veteran; or

5. Student was an orphan or ward of the court;

In addition, financial aid officers may designate students who do not meet these criteria to be independent, if the students can document that they are in fact self-supporting.

Undergraduate class level LOANLVL2 (NPSAS:90)

LOANLVL2 (NPSAS:93)

UGLEVEL2 (NPSAS:96)

Highest class level of student during the NPSAS year, based on the NPSAS survey class level and the class levels

reported in NSLDS for federal student loans received that year.

1st year/freshman

2nd year/sophomore

3rd year/junior

4th or 5th year/senior

Dependent student income PCTDEP (NPSAS:90)

PCTDEP (NPSAS:93)

PCTDEP (NPSAS:96)

Percentile rank of family income of dependent student parents, based on all dependent students in the NPSAS survey

year. The annual income is for the calendar year prior to the NPSAS survey year, as reported on the financial aid

application or estimated by students and parents in the telephone interview. Approximately one-fourth of the values

are imputed. It is not clear why the threshold value for the lowest quartile was higher in 1991 than in 1994.

Lowest quartile Dependent student parent’s annual income is less than $22,400

in 1988, less than $27,000 in 1991, or less than $24,000 in

1994.

Second quartile Dependent student parent’s annual income is $22,400 to

$37,800 in 1988, $27,000 to $45,000 in 1991, or $24,000 to

$46,500 in 1994.

Third quartile Dependent student parent’s annual income is $37,800 to

$58,500 in 1988, $45,000 to $60,000 in 1991, or $46,500 to

$70,000 in 1994.

Highest quartile Dependent student parent’s annual income is over $58,500 in

1988, over $60,000 in 1991, or over $70,000 in 1994.
Appendix B—Glossary

80

Independent student income PCTINDEP (NPSAS:90)

PCTINDEP (NPSAS:93)

PCTINDEP (NPSAS:96)

Percentile rank of independent student’s annual income, including the income of a spouse, based on all independent

students in the NPSAS survey year. The annual income is for the prior calendar year, as reported on the financial aid

application or in the survey of students. Approximately one-fourth of the values are imputed.

Lowest quartile Student annual income is less than $7,000 in 1988, less than

$10,000 in 1991, or less than $8,300 in 1994.

Second quartile Student annual income is $7,000 to $15,800 in 1988, $10,000

to $21,000 in 1991, or $8,300 to $18,800 in 1994.

Third quartile Student annual income is $15,800 to $28,700 in 1988, $21,000

to $35,500 in 1991, or $18,800 to $35,000 in 1994.

Highest quartile Student annual income is over $28,700 in 1988, over $35,500

in 1991, or over $35,000 in 1994.

Unsubsidized Stafford and SLS loans SLSR (NPSAS:90)

SLSR (NPSAS:93)

STAFUNSB (NPSAS:96)

The unsubsidized SLS loan amount received in 1989–90 or 1992–93 or the unsubsidized Stafford loan amount received in 1995–96. The SLS program was phased out in 1993–94. An unsubsidized loan is not awarded on the basis

of need. If a student qualifies for an unsubsidized loan, he or she is charged interest from the time the loan is disbursed until it is paid in full. Students can choose to pay the interest or allow it to accumulate. If the student allows

the interest to accumulate, it will be capitalized (added to the principal amount of the loan). The NPSAS:90 and

NPSAS:93 amounts were revised in August 1998 to incorporate additional information from NSLDS.

Stafford/SLS total loans SLS_STR (NPSAS:90)

SLS_STR (NPSAS:93)

STAFFAMT (NPSAS:96)

The total Stafford/SLS loan amount received for the academic year, including either a subsidized Stafford or an unsubsidized Stafford or SLS, or a combination of both. The NPSAS:90 and NPSAS:93 amounts were revised in

August 1998 to incorporate additional information from NSLDS.

Subsidized Stafford loans STAFFR (NPSAS:90)

STAFFR (NPSAS:93)

STAFSUB (NPSAS:96)

The subsidized Stafford loan amount received for the academic year. A subsidized loan is awarded on the basis of

financial need. If a student qualifies for a subsidized loan, the federal government pays the interest on the loan until

the student begins repayment, and during authorized periods of deferment thereafter. The NPSAS:90 and NPSAS:93

amounts were revised in August 1998 to incorporate additional information from NSLDS.
Appendix B—Glossary

81

Stafford/SLS loan combination STAFTYPR (NPSAS:90)

STAFTYPR (NPSAS:93)

STAFTYPE (NPSAS:96)

Indicates whether a student received only a subsidized Stafford loan, only an unsubsidized Stafford or SLS loan, or

both types of loan for the academic year.

Subsidized only

Both

Unsubsidized only

Cumulative Stafford/SLS loan amount STCUM89A (NPSAS:90)

STCUM92A (NPSAS:93)

STCUM95A (NPSAS:96)

Cumulative amount of Stafford and SLS loans borrowed in all prior years for undergraduate education through June

1990, June 1993, or June 1996. This is a composite variable based primarily on the cumulative Stafford/SLS loan

amounts calculated from all Stafford or SLS loans reported in NSLDS for all prior academic periods. It does not

reflect what was still owed. Values were imputed or adjusted to reconcile with loans reported by institutions which

were not matched in NSLDS records (approximately 15 percent in NPSAS:90 and NPSAS:93 and 6 percent in

NPSAS:96).

Borrowed maximum subsidized loan amount STFCT1R (NPSAS:90)

STFCT1R (NPSAS:93)

STAFFCT1 (NPSAS:96)

Indicates whether the student borrowed the maximum amount allowable in Stafford (subsidized) loans. In 1989–90

and 1992–93, first and second year students could borrow up to $2,625 and upper level undergraduates could borrow

up to $4,000. In 1995–96 the subsidized maximum for first-year students was $2,625; for second-year students,

$3,500; for third-, fourth-, and fifth-year students, $5,500. The subsidized Stafford loan limits were the same for dependent and independent undergraduates.

None

Less than maximum

Maximum

Borrowed maximum total Stafford/SLS loan amount STFCAT2R (NPSAS:90)

STFCAT2R (NPSAS:93)

STAFCT2R (NPSAS:96)

Indicates whether maximum Stafford (subsidized) and SLS (unsubsidized) loan combined amount was borrowed. In

1989–90 and 1992–93 dependent students were eligible for SLS loans only under unusual circumstances. Independent students were eligible for SLS loans of up to $4,000 at all class levels (in addition to the subsidized Stafford

amount). Independent first and second year students could borrow up to $6,625 and upper level undergraduates

could borrow up to $8,000 by combining subsidized Stafford and unsubsidized SLS loans. In 1995–96 both dependent and independent undergraduates could combine subsidized and unsubsidized Stafford loans up to the following

annual limits:
Appendix B—Glossary

82

Student class level: Dependent: Independent:

First year $2,625 $6,625

Second year $3,500 $7,500

Third–fifth year $5,500 $10,500

None

Less than maximum

Maximum

Grants TOTGRTR (NPSAS:90)

TOTGRTR (NPSAS:93)

TOTGRT (NPSAS:96)

Total amount of grant and scholarship aid received from any source for the NPSAS year. Totals for NPSAS:90 were

revised in October 1998 to correct overstated institutional totals and NPSAS:93 amounts were revised in August

1997 to add underreported employer aid amounts.

Tuition and fees TUITCST2 (NPSAS:90)

TUITION2 (NPSAS:93)

TUITION2 (NPSAS:96)

Indicates the amount of tuition charged the student for the terms attended at the NPSAS institution, as reported by

the institution. If tuition amounts were not reported, they were estimated based on the average per credit or per term

charges for other students at the institution according to their class level, degree program, and attendance status. Students attending more than one institution during the year are excluded, since their tuition at the second institution is

unknown.
83

Appendix C—Technical Notes and Methodology

The National Postsecondary Student Aid Study (NPSAS)

The National Postsecondary Student Aid Study (NPSAS) is a comprehensive nationwide

study conducted by the Department of Education’s National Center for Education Statistics

(NCES) to determine how students and their families pay for postsecondary education.32 It also

describes demographic and other characteristics of students enrolled. The study is based on a nationally representative sample of all students in postsecondary education institutions, including

undergraduate, graduate, and first-professional students. Students attending all types and levels of

institutions are represented in the sample, including public and private institutions and less-than2-year institutions, 2-year institutions, and 4-year colleges and universities. The study is designed

to address the policy questions resulting from the rapid growth of financial aid programs, and the

succession of changes in financial aid program policies since 1986. The first NPSAS study was

conducted in 1986–87, and then again in 1989–90, in 1992–93 and in 1995–96. This report analyzed data from the last three administrations of the NPSAS survey (NPSAS:90, NPSAS:93 and

NPSAS:96) which were supplemented by the federal student loan data made available through

the National Student Loan Data System (NSLDS).

Accuracy of Estimates

The statistics in this report are estimates derived from a sample. Two broad categories of

error occur in such estimates: sampling and nonsampling errors. Sampling errors occur because

observations are made only on samples of students, not entire populations. Nonsampling errors

occur not only in sample surveys but also in complete censuses of entire populations. Nonsampling errors can be attributed to a number of sources: inability to obtain complete information

about all students in all institutions in the sample (some students or institutions refused to participate, or students participated but answered only certain items); ambiguous definitions; differences in interpreting questions; inability or unwillingness to give correct information; mistakes in

recording or coding data; and other errors of collecting, processing, sampling, and imputing

missing data.

 

32For more information on the NPSAS survey, consult U.S. Department of Education, National Center for Education Statistics,

Methodology Report for the 1995–96 National Postsecondary Student Aid Study (NCES 98-073) (Washington, D.C.: 1997).
Appendix C—Technical Notes and Methodology

84

Data Analysis System

Unless otherwise noted, the estimates presented in this report were produced using the

NPSAS:90/93/96 Data Analysis Systems (DAS). The DAS software makes it possible for users

to specify and generate their own tables from the NPSAS data. With the DAS, users can replicate

or expand upon the tables presented in this report. In addition to the table estimates, the DAS

calculates proper standard errors33 and weighted sample sizes for these estimates. For example,

table C1 contains standard errors that correspond to supplemental table 1.1, and it was generated

by the DAS. If the number of valid cases is too small to produce a reliable estimate (less than 30

cases), the DAS prints the message “low-N” instead of the estimate.

In addition to tables, the DAS will also produce a correlation matrix of selected variables to

be used for linear regression models. Included in the output with the correlation matrix are the

design effects (DEFT) for each variable in the matrix. Since statistical procedures generally compute regression coefficients based on simple random sample assumptions, the standard errors

must be adjusted with the design effects to take into account the NPSAS stratified sampling

method.

For more information about the NPSAS and other Data Analysis Systems, consult the

NCES DAS website (www.nces.ed.gov/das) or its West Coast mirror site (www.pedar-das.org),

or contact:

Aurora D’Amico

Postsecondary Studies Division

National Center for Education Statistics

555 New Jersey Avenue, NW

Washington, DC 20208-5652

(202) 219-1365

Internet address: Aurora_D’Amico@ed.gov

 

33The NPSAS samples are not simple random samples, and therefore, simple random sample techniques for estimating sampling

error cannot be applied to these data. The DAS takes into account the complexity of the sampling procedures and calculates standard errors appropriate for such samples. The method for computing sampling errors used by the DAS involves approximating

the estimator by the linear terms of a Taylor series expansion. The procedure is typically referred to as the Taylor series method.
Appendix C—Technical Notes and Methodology

85

Table C1—Standard errors for table 1.1: Percentage of all undergraduates who received any federal Stafford

Table C1—Loans or Supplemental Loans to Students (SLS), and the average amount borrowed in 1989–90, 

Table C1—1992–93, and 1995–96

Average Average Average 

 Percent amount Percent amount Percent amount 

 Total 0.62 $30.3 0.57 $37.3 0.55 $37.0 

Type of institution

 Public 4-year 0.85 31.1 0.70 31.8 0.80 44.3 

 Private, not-for-profit 4-year 1.13 32.3 1.37 41.8 1.49 68.9 

 Public 2-year 0.43 71.4 0.49 78.2 0.59 149.6 

 Private, for profit 2.57 70.2 3.42 109.6 3.14 138.5 

Undergraduate class level 

 1st year/freshman 0.95 52.7 0.72 70.1 0.66 55.6 

 2nd year/sophomore 0.66 35.0 0.72 39.4 0.89 55.9 

 3rd year/junior 0.83 46.8 0.90 51.2 1.12 68.5 

 4th or 5th year senior 0.80 42.3 0.70 40.4 0.94 56.6 

Dependency status

 Dependent 0.63 23.3 0.62 33.3 0.66 25.2 

 Independent 0.86 43.4 0.67 55.3 0.65 74.5 

Dependent student income

 Lowest quartile 1.13 34.1 1.29 47.5 1.23 46.9 

 Second quartile 0.95 32.0 1.00 41.9 1.25 44.7 

 Third quartile 0.86 39.2 0.78 49.7 1.04 44.2 

 Highest quartile 0.46 55.8 0.56 47.0 0.75 41.4 

Independent student income

 Lowest quartile 1.46 57.0 1.31 60.2 1.26 95.8 

 Second quartile 1.26 53.7 0.90 83.6 1.12 105.7 

 Third quartile 0.78 68.1 0.67 85.2 0.83 124.2 

 Highest quartile 0.55 85.5 0.51 123.2 0.61 146.4 

Attendance pattern

 Full-time/full-year 0.67 25.8 0.75 38.1 0.81 37.8 

 Full-time/part-year 1.21 69.1 1.18 63.5 1.20 84.0 

 Part-time/full-year 0.43 66.5 0.55 83.1 0.77 95.3 

 Part-time/part-year 0.41 93.4 0.43 85.1 0.32 116.1 

Tuition and fees*

 Less than $1,000 0.34 61.9 0.35 72.5 0.33 139.6 

 $1,000–1,999 0.88 39.6 0.83 43.4 0.98 85.7 

 $2,000–3,999 1.71 50.3 0.94 42.1 1.14 64.1 

 $4,000–7,999 1.75 49.8 2.10 65.3 1.45 67.2 

 $8,000 or more 1.92 59.7 1.24 64.6 1.18 59.5 

*Tuition amounts include out-of-state students who are usually charged higher tuition.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, 

1989–90 (NPSAS:90), 1992–93 (NPSAS:93), 1995–96 (NPSAS:96), Undergraduate Data Analysis Systems.

1989–90 1992–93 1995–96
Appendix C—Technical Notes and Methodology

86

Statistical Procedures

Differences Between Means

The descriptive comparisons were tested in this report using Student’s t statistic. Differences between estimates are tested against the probability of a Type I error,34 or significance

level. The significance levels were determined by calculating the Student’s t values for the differences between each pair of means or proportions and comparing these with published tables of

significance levels for two-tailed hypothesis testing.

Student’s t values may be computed to test the difference between estimates with the following formula:

2

2

2

1

1 2

se se

E E

t

+

− = (1)

where E1 and E2 are the estimates to be compared and se1 and se2 are their corresponding standard errors. This formula is valid only for independent estimates. When estimates are not independent, a covariance term must be added to the formula:

E -E

se + se - 2(r)se se

1 2

1

2

2

2

1 2

 (2)

where r is the correlation between the two estimates.35 This formula is used when comparing two

percentages from a distribution that adds to 100. If the comparison is between the mean of a subgroup and the mean of the total group, the following formula is used:

E E

se se p se

sub tot

sub tot sub

−

+ − 22 2 2 

(3)

where p is the proportion of the total group contained in the subgroup.36 The estimates, standard

errors, and correlations can all be obtained from the DAS.

 

34A Type I error occurs when one concludes that a difference observed in a sample reflects a true difference in the population

from which the sample was drawn, when no such difference is present.

35U.S. Department of Education, National Center for Education Statistics, A Note from the Chief Statistician, no. 2, 1993.

36Ibid.
Appendix C—Technical Notes and Methodology

87

There are hazards in reporting statistical tests for each comparison. First, comparisons

based on large t statistics may appear to merit special attention. This can be misleading since the

magnitude of the t statistic is related not only to the observed differences in means or percentages

but also to the number of students in the specific categories used for comparison. Hence, a small

difference compared across a large number of students would produce a large t statistic.

A second hazard in reporting statistical tests for each comparison occurs when making

multiple comparisons among categories of an independent variable. For example, when making

paired comparisons among different levels of income, the probability of a Type I error for these

comparisons taken as a group is larger than the probability for a single comparison. When more

than one difference between groups of related characteristics or “families” are tested for statistical significance, one must apply a standard that assures a level of significance for all of those

comparisons taken together.

Comparisons were made in this report only when p< .05/k for a particular pairwise comparison, where that comparison was one of k tests within a family. This guarantees both that the

individual comparison would have p< .05 and that for k comparisons within a family of possible

comparisons, the significance level for all the comparisons will sum to p< .05.37

For example, in a comparison of the percentages of males and females who enrolled in

postsecondary education, only one comparison is possible (males versus females). In this family,

k=1, and the comparison can be evaluated without adjusting the significance level. When students are divided into five racial–ethnic groups and all possible comparisons are made, then k=10

and the significance level of each test must be p< .05/10, or p< .005. The formula for calculating

family size (k) is as follows:

k j j = ( ) −1

2 (4)

where j is the number of categories for the variable being tested. In the case of race–ethnicity,

there are five racial–ethnic groups (American Indian/Alaskan Native; Asian/Pacific Islander;

black, non-Hispanic; Hispanic; and white, non-Hispanic), so substituting 5 for j in equation 2,

k = 5(5 -1)

2

=10

 

37The standard that p≤ .05/k for each comparison is more stringent than the criterion that the significance level of the comparisons should sum to p≤ .05. For tables showing the t statistic required to ensure that p≤ .05/k for a particular family size and degrees of freedom, see Olive Jean Dunn, “Multiple Comparisons Among Means,” Journal of the American Statistical Association

56 (1961): 52–64.
Appendix C—Technical Notes and Methodology

88

Differences Between Two Pairs of Means

Some descriptive comparisons in this report were tested using the Student’s t statistic for

two pairs of estimates, in which the significance of the difference between two pairs of estimates

was determined (e.g., the change in borrowing rates over two different time periods). Statistical

significance was determined by calculating t values for differences between two pairs of means

or proportions and comparing these with published values of t for two-tailed hypothesis testing,

using a 5 percent probability of a Type I error (a significance level of .05).

Student’s t values may be computed to test the difference between two pairs of estimates

with the following formula:

( ) ( )

2

2

3

2

4

2

2

1

2

2

2 1 4 3 ( ) ( )

se se se se

E - E E - E t =

+ + +

− (5)

where E2 - E1 and E4 - E3 are the two pairs of estimates to be compared and se1 and se2, se3 and

se4 are their corresponding standard errors. Note that this formula is valid only for independent

estimates.